The EU has agreed to provide a massive €90bn interest-free loan to Ukraine, after talks in Brussels went deep into the night before finally achieving a breakthrough.
EU Council president Antonio Costa said the loan would meet the war-hit nation’s military and economic needs for the next two years.
European leaders did not immediately explain how the loan would be funded but said Ukraine would not have to pay the money back until Russia pays it reparations for the damage caused by Vladimir Putin's invasion.
And they reserved the right to use £185bn in frozen Russian assets to cover the loan if Moscow refuses to pay those reparations after the war.
Negotiators worked late into the night to reassure Belgium that they would provide guarantees to protect it from Russian retaliation if it backed the loan for Ukraine. Most of Russia's frozen assets are held in Brussels.
Putin lashed out at European leaders on the eve of the funding summit, calling them "little pigs", while Russia has called any attempt to use its frozen assets as "theft".
Zelensky thanks EU leaders for loan: 'Strengthens our resilience'
Volodymyr Zelensky has thanked EU leaders for the loan to Ukraine that was agreed last night in Brussels.
“I am grateful to all leaders of the European Union for the European Council’s decision on €90 billion in financial support for Ukraine in 2026–2027. This is significant support that truly strengthens our resilience,” he said on X.
The Ukrainian president said the deal ensured financial security for his country and said Russia's assets in a Belgian clearing house must be kept frozen.
“It is important that Russian assets remain immobilized and that Ukraine has received a financial security guarantee for the coming years. Thank you for the result and for unity. Together, we are defending the future of our continent,” he said.
Arpan Rai19 December 2025 05:49
Will need to speak to Putin, says Macron
French president Emmanuel Macron said it “will become useful” to speak to the Russian leader Vladimir Putin after the EU agreed on a loan to finance Ukraine.
“I think that we Europeans and Ukrainians need to find a framework to engage a discussion in due form,” he said.
The French president added that Europeans should not let the conversation be led solely “by intermediaries” as peace talks continue between Moscow and Washington.
Arpan Rai19 December 2025 05:37
Belgium says Ukraine and Europe are both winners after loan deal agreed by EU
Belgian prime minister Bart De Wever welcomed the loan for Ukraine as a win for Europe, having led the objections to using frozen Russian assets to fund it.
“I think Ukraine has won… Europe has won, and financial stability has certainly won,” he said, answering a question on whether he saw the result of the talks as a win.
“I contributed to finding a solution for Ukraine, which was of the essence,” he said.
De Wever said that he was in theory “willing to discuss” the frozen assets plan again in future, but said fresh discussions in January were “not realistic”.
Arpan Rai19 December 2025 05:25
How Europe will fund Ukraine loan of €90bn from joint borrowing
European leaders have agreed to meet Ukraine’s immediate financial needs for the next two years via a joint borrowing mechanism, avoiding the controversy of funding a loan through frozen Russian assets.
A 15-hour high-stakes summit in Brussels concluded with EU leaders announcing they will borrow cash to fund Ukraine's defence against Russia until the end of 2027.
In doing so, the bloc has to set aside its plan to make Russia indirectly finance Ukraine with Russian sovereign cash held in Brussels, following objections primarily from Belgium and Hungary.
The cash for the loan will be raised through joint borrowing by 24 of the EU’s 27 countries, excluding Czechia, Hungary and Slovakia. All members were required to agree to the plan because it’s guaranteed by the central EU long-term budget.
European leaders said the plan will only require Ukraine to pay back the loan if Russia provides reparations at the end of the war. If Moscow declines to do so, the EU says it still reserves the right to take the €90bn back out of the €210bn worth of Russian assets that are frozen in Europe, mostly at Belgian financial clearing house Euroclear.
Arpan Rai19 December 2025 05:06
Watch: Putin calls European leaders ‘little pigs’ ahead of crucial summit in Brussels
Arpan Rai19 December 2025 04:42
Zelensky says he understands Belgium's concerns about using Russian assets
Volodymyr Zelensky said he understand Belgium’s concerns on using frozen Russian assets after a conversation with the country’s prime minister Bart De Wever.
“Together with Prime Minister of Belgium @Bart_DeWever, we discussed mechanisms for using frozen Russian assets. I understand all of Belgium’s concerns; however, a decision on the reparations loan must be made. It is fair and will ensure long-term predictability for Ukraine,” he said on X.
“We also discussed coordination in diplomacy between Europe and the United States for the sake of peace, Ukraine’s future membership in the European Union, support for Ukraine’s energy system, and reconstruction,” Zelensky said.
Arpan Rai19 December 2025 04:23
EU has avoided chaos and division with agreement on Ukraine funding, Belgium says
EU leaders have avoided "chaos and division" with their decision to provide Ukraine with a loan through borrowing cash rather than use frozen Russian assets, Belgian prime minister Bart De Wever said in the early hours today.
"We remained united," De Wever said after EU leaders had discussed for hours how to provide Ukraine with the money it needs to sustain its fight against Russia's invasion.
Some €210bn (£183bn) worth of Russian assets are frozen in Europe, most of them in the Belgian financial clearing house Euroclear. Belgium had objected to the loan plan, calling it legally risky and warning that it could harm Euroclear's business.
Belgium was rattled last week when Russia's Central Bank launched a lawsuit against Euroclear to prevent any loan being provided to Ukraine with frozen Russian funds.
Arpan Rai19 December 2025 03:49
Germany's Merz hails zero-interest loan for Ukraine
German chancellor Friedrich Merz has hailed the deal reached by European leaders working late into Thursday night in Brussels.
“The financial package for Ukraine has been finalised," Merz said in a statement, noting that "Ukraine is granted a zero-interest loan”.
“These funds are sufficient to cover the military and budgetary needs of Ukraine for the two years to come," Merz added.
He said the frozen assets will remain blocked until Russia has paid war reparations to Ukraine. Ukrainian president Volodymyr Zelensky has said that would cost over €600bn (£525bn).
“If Russia does not pay reparations we will — in full accordance with international law — make use of Russian immobilised assets for paying back the loan," Merz said.
Arpan Rai19 December 2025 03:43
Macron says EU leaders delivered what they committed for Ukraine
French president Emmanuel Macron described the deal agreed between the EU leaders as a major advance, saying this option "was the most realistic and practical way" to fund Ukraine and its war efforts.
Calling the gathering a “very good summit for Ukraine”, Macron said the European leaders delivered what they committed to do for Ukraine.
He added that the deal included a mechanism to protect three countries — Hungary, Slovakia and the Czech Republic — from any financial fallout.
Arpan Rai19 December 2025 03:22
EU leaders agree on €90bn loan to Ukraine
European Union leaders have agreed to provide a massive interest-free loan to Ukraine to meet its military and economic needs for the next two years, EU Council president Antonio Costa said.
“We have a deal. Decision to provide €90bn ($106bn) of support to Ukraine for 2026-27 approved. We committed, we delivered,” Costa said in a post on social media, without providing details about how the money would be raised.
The EU leaders worked deep into Thursday night to reassure Belgium that they would provide guarantees to protect it from Russian retaliation if it backed the loan for Ukraine.
Arpan Rai19 December 2025 03:01
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