Brussels: EU leaders have approved a 90-billion-euro loan to help Ukraine cover its looming budget shortfalls, after more than a day of intense negotiations at a summit in Brussels.
The agreement, seen as a lifeline for Kyiv, fell short of tapping frozen Russian assets, a plan that had faced stiff opposition from member states. “We have a deal. Decision to provide 90 billion euros of support to Ukraine for 2026-27 approved,” EU chief Antonio Costa wrote on X.
The loan will be backed by the EU’s common budget, providing Ukraine with crucial support for 2026-27. Leaders had initially considered using 200 billion euros of Russian central bank assets frozen in the EU to generate the funds. However, Belgium, which holds most of the assets, demanded guarantees on liability sharing, prompting the plan to be shelved.
German Chancellor Friedrich Merz, a proponent of using the frozen assets, said the final loan decision still sends a strong message to Russian President Vladimir Putin. The EU estimates Ukraine will need an additional 135 billion euros over the next two years, with the financial crunch expected to begin in April.
We have a deal.
Decision to provide 90 billion euros of support to Ukraine for 2026-27 approved.
We committed, we delivered.
— António Costa (@eucopresident) December 19, 2025
President Volodymyr Zelensky had urged EU leaders to use the Russian assets, calling it moral, fair, and legal, and emphasized that a firm financial footing would strengthen Kyiv’s leverage in peace talks. While the EU opted for an alternative financing method, the loan provides critical relief to Ukraine’s strained economy.
Amid the EU summit, Zelensky also announced that Ukrainian and US delegations would hold new talks in Washington to discuss further guarantees to protect Ukraine from future Russian aggression. US President Donald Trump urged Kyiv to move swiftly in reaching an agreement, stressing the importance of timely decisions.
