US EditionEU Agrees on €90B Loan to Ukraine, Fails to Use Russian Assets
EU leaders agreed on a €90 billion loan to Ukraine for 2026-27 funded by borrowing on capital markets, after failing to use €200 billion in frozen Russian assets, amid urgent budget needs.
- After marathon talks in Brussels, EU leaders agreed on Friday to provide a 90 billion euro loan to Ukraine for 2026-27, following urgent discussions about Kyiv's cash needs.
- The EU estimates Ukraine needs an extra 135 billion euros to stay afloat and faces a cash crunch starting in April, while the IMF projects 137 billion euros for 2026-27, prompting President Volodymyr Zelenskyy to demand a year-end decision.
- The number one option had been to tap about 200 billion euros of frozen Russian assets, but Belgian Prime Minister Bart De Wever demanded liability guarantees and Russia's Central Bank sued Euroclear.
- Agreeing a compromise, leaders chose joint EU borrowing backed by the EU budget and headroom, granting Ukraine a zero-interest loan repayable only after reparations; Hungary, Slovakia and the Czech Republic secured exemptions.
- EU leaders noted they reserve the right to use immobilised Russian assets to repay the loan, while avoiding a legal precedent, as `This sends a clear signal from Europe to Putin: This war will not be worth it,` Merz said.
430 Articles
430 Articles
Kremlin officials praise the agreement after the lengthy debate on frozen assets as a "serious blow to the war thugs in the EU."
There was a time during the evening-night of yesterday when the possibility of approving the use of Russian assets seemed real in Brussels. The European Commission and Belgium...
The EU countries have agreed on a compromise on the financing of Ukraine for the next two years. Russian assets are not directly included - unlike the German Chancellor Merz wanted - but instead there is an interest-free loan. We explain what is so far known about the agreement.
EU Agrees to New Ukraine Loan, But Russian Asset Plan Fails
EU leaders agreed Friday to provide Ukraine with a loan of 90 billion euros ($105 billion) to stabilize the war-torn country’s finances, but failed to reach consensus on a more ambitious plan to use frozen Russian assets to fund additional aid.
EU avoids risky precedent in Ukraine aid deal
The European Union’s leaders began their crucial summit on Thursday aimed at converging around the Commission’s proposal to use Russian funds frozen in Europe to guarantee a “reparations loan” to Ukraine. In the early hours on Friday, they opted instead to extend a loan of €90 billion backed only by the EU’s own budget. The attempt to leverage the Russian assets opened a breach within the EU that could not be overcome. As the meeting opened, sev…
Coverage Details
Bias Distribution
- 43% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
