The European Union has approved a major financial package. It is a €90 billion loan for Ukraine. This news is trending globally. The loan supports Ukraine’s needs for two years. It covers military and economic aid. The EU reached this decision after much debate. A key discussion involved frozen Russian assets. EU leaders committed to delivering support. They announced, “We committed, we delivered.” This statement came from EU Council President António Costa. The decision provides crucial funding for Ukraine.
EU Commits €90 Billion to Ukraine
The EU leaders agreed on this significant loan. It is aimed at Ukraine’s defense and economy. The funds will cover 2026 and 2027. This financial lifeline is vital for Ukraine. It averts a potential funding shortfall. President Volodymyr Zelenskyy called it significant support. He stated it “truly strengthens our resilience.” This agreement ensures financial security for Ukraine. It is a critical piece of global news.
Frozen Russian Assets: A Stalled Plan
An earlier plan involved using frozen Russian assets. Russia’s central bank assets are frozen. They total about €210 billion. Most are held in Belgium. This idea aimed to secure the loan. However, EU member states could not agree. Belgium raised concerns about legal risks. It feared retaliation from Russia. Other nations also expressed doubts. This stalled the ambitious asset-backed plan. Consequently, EU leaders pursued an alternative.
The Loan’s Mechanics and Terms
The €90 billion loan will be raised differently. The EU will borrow money on capital markets. The EU budget will back this borrowing. This approach avoids the complexities of frozen assets. It ensures quicker access to funds. The loan is interest-free. Ukraine will repay it only after Russia pays reparations. The EU reserves the right to use frozen assets. This would happen if Russia fails to pay reparations. German Chancellor Friedrich Merz supported the outcome. He called it “good news for Ukraine.”
Broader Context and Implications
This loan is part of a larger EU aid package. The total package for 2025-2027 is €210 billion. The loan covers about two-thirds of Ukraine’s needs. Other allies are expected to provide the rest. Some EU countries, like Hungary, Slovakia, and Czechia, opted out. They did not participate directly in the debt. This was managed through an “enhanced cooperation” mechanism. This mechanism allows some states to opt-out. It avoids vetoes blocking crucial decisions. This move might set a precedent for future EU actions. Russian President Vladimir Putin reacted to the news. He called the initial plan “daylight robbery.” He welcomed the EU’s decision not to use frozen assets.
Ukraine’s Reaction and Future Needs
Ukraine’s President expressed gratitude. He thanked EU leaders for their unity. The loan provides predictability for Kyiv. This bolsters confidence among international partners. Ukraine still needs an estimated €45 billion from allies. This demonstrates the ongoing global effort. The Ministry of Finance of Ukraine is working on details. They aim to launch the initiative soon.
Conclusion
The EU’s approval of this €90 billion loan is significant. It underscores continued European support for Ukraine. The decision highlights a pragmatic approach. It prioritizes stable funding over complex asset debates. This development is a key piece of global news. It shows the EU’s commitment to Ukraine’s resilience. The situation remains dynamic. However, immediate financial needs are now addressed.
