Leaders of the European Union have reached an agreement to extend a €90bn (£79bn; $105bn) loan to Ukraine following unsuccessful discussions about utilizing frozen Russian assets.
This accord, which the leaders indicated would fulfill Ukraine’s military and economic requirements for the upcoming two years, emerged after more than a full day of negotiations during a summit in Brussels.
“We made a commitment, and we followed through,” EU chief Antonio Costa posted on X while announcing the deal to furnish a loan supported by the bloc’s shared budget.
Ukrainian President Volodymyr Zelensky had called on leaders to utilize €200 billion in frozen Russian assets, but Belgium, where most of the funds are retained, required liability-sharing guarantees that other nations found excessive.
In a separate statement, French President Emmanuel Macron expressed his belief that it would be “beneficial” for Europe to reconnect with Russian President Vladimir Putin.
“I think it’s in our interests as Europeans and Ukrainians to establish the right framework to resume discussions,” he stated, suggesting that Europeans should seek ways to do so “in the coming weeks”.
EU leaders sidestepped “disarray and rifts” with their choice to assist Ukraine through a loan rather than tapping frozen Russian funds, commented Belgian Prime Minister Bart De Wever earlier on Friday.
“We stayed united,” De Wever noted.
Ukraine is only months away from depleting its finances, and Zelensky warned that without a financial boost by spring, Ukraine would “have to cut back on drone production”.
The EU anticipates that Ukraine will require an additional €135 billion to remain operational over the next two years, with a financial shortfall expected to commence in April.
German Chancellor Friedrich Merz, who supported the asset usage proposal, asserted that the final resolution regarding the loan “sends a strong message” to Putin.
Russia had cautioned EU leaders against accessing its funds, but Polish Prime Minister Donald Tusk stated it was necessary for them to “rise to this moment”.
This agreement provides Kyiv with a crucial lifeline amid intense diplomatic activity as US President Donald Trump pushes for a swift resolution to conclude Russia’s conflict.
Officials from the US and Russia are scheduled to convene in Miami this weekend for additional discussions regarding a peace initiative, a White House representative informed AFP news agency. It is expected that Kremlin envoy Kirill Dmitriev will engage with Trump’s representatives Steve Witkoff and Jared Kushner in Miami.
In the meantime, Zelensky disclosed that Ukrainian and US delegations would initiate new talks on Friday and Saturday in the United States.
He expressed a desire for Washington to provide more specifics on the assurances it could extend to shield Ukraine from future invasions.
