The European Union has approved a €90 billion loan for Ukraine to bolster its military and economic stability, following unsuccessful discussions about utilizing frozen Russian assets. This decision emerged from a summit in Brussels that lasted over 24 hours, where EU leaders prioritized immediate support for Ukraine’s pressing needs.
European Council President Antonio Costa announced the agreement through social media, emphasizing that the bloc had both “committed” and “delivered.” The funding will be secured through the EU’s common budget, highlighting the collective financial responsibility among member states.
Ukrainian President Volodymyr Zelensky had previously urged EU leaders to consider accessing approximately €200 billion in frozen Russian assets. However, Belgium, which holds a significant portion of these funds, insisted on liability-sharing guarantees that were not acceptable to other member states. Zelensky expressed gratitude for the loan, describing it as “significant support that truly strengthens our resilience,” while reiterating the importance of keeping Russian assets immobilized.
Belgian Prime Minister Bart De Wever articulated that opting to secure funds rather than seizing Russian assets helped maintain EU unity and avoid potential disarray. He remarked that the decision was crucial in preserving stability within the union.
Ukraine is currently facing an urgent financial crisis, with Zelensky warning that without additional funding by spring, Kyiv may have to reduce drone production. The EU anticipates that Ukraine will require an additional €135 billion over the next two years, as financial pressures are set to escalate from April 2024.
Friedrich Merz, the Chancellor of Germany, stated that the agreement sends a “clear signal” to Russian President Vladimir Putin. Meanwhile, Polish Prime Minister Donald Tusk called on his fellow leaders to “rise to this occasion” in the face of Moscow’s warnings against the use of its frozen assets.
The loan represents a vital lifeline for Ukraine as diplomatic efforts surrounding the ongoing conflict with Russia intensify. Renewed discussions led by the United States are expected, with Ukrainian and American officials slated to meet in the coming days to further address the situation.
This financial support not only reinforces Ukraine’s resilience but also demonstrates the EU’s commitment to standing firm in the face of external pressures, even as negotiations regarding the use of Russian assets remain unresolved.
