European Union to Grant Ukraine €90 Billion Loan, Frozen Russian Assets Remain Unresolved

European Union leaders have agreed to provide Ukraine with a €90 billion loan to help cover military and economic needs through 2026 and 2027. The decision was announced during the second day of a summit in Brussels, bringing the EU much closer to meeting Ukraine’s projected funding requirement of €137 billion over the next two years. EU High Representative Antonio Costa confirmed the loan would be supported by the EU’s joint budget, declaring, “We promised and we delivered.” Ukrainian President Volodymyr Zelensky underscored the importance of the loan for the country’s resistance and highlighted the unresolved status of frozen Russian assets.

Despite consensus on the loan, EU members remain divided over whether to transfer frozen Russian assets to Ukraine. Belgian Prime Minister Bart De Wever pointed out that the agreement prevented deeper EU divisions but expressed reservations about using the assets held in Belgium, echoing broader hesitation within the bloc. Meanwhile, Russia has formally warned the EU against using the estimated €210 billion in frozen assets and announced legal action to retrieve the funds.

Most of the frozen Russian assets are held by Belgium-based financial firm Euroclear, and disagreements over their potential use persist within the EU. As the union moves forward with direct financial support for Ukraine, the future of the Russian funds remains uncertain. French President Emmanuel Macron also suggested that reengaging with President Vladimir Putin could be in the interests of both Europeans and Ukrainians, signaling ongoing debates about the long-term strategy regarding Russia.