European Union leaders have hammered out a deal to hand Ukraine a €90 billion loan after their attempts to tap into frozen Russian assets hit a wall.
The agreement came together after more than a day of intense talks in Brussels, with leaders saying the package should cover Ukraine’s military and economic needs for the next two years. EU chief Antonio Costa took to X with a simple message: “We committed, we delivered,” announcing the loan would be backed by the bloc’s shared budget.
Ukrainian President Volodymyr Zelensky had been pushing hard for leaders to unlock €200 billion in frozen Russian assets, but Belgium threw up a roadblock. Since the country holds the lion’s share of that frozen cash, it wanted guarantees about sharing the liability. Other countries weren’t willing to go there.
In a surprising turn, French President Emmanuel Macron suggested Europe should consider reopening dialogue with Vladimir Putin. “I believe that it’s in our interest as Europeans and Ukrainians to find the right framework to re-engage this discussion,” he told reporters, adding that Europeans need to figure out how to do this “in coming weeks.”
Belgian Prime Minister Bart De Wever, speaking early Friday morning, framed the loan decision as steering clear of “chaos and division.” By choosing to borrow money rather than seize Russian assets outright, he said, “We remained united.”
The stakes couldn’t be higher. Ukraine is only months away from running out of money, and Zelensky warned that without fresh funding by spring, the country would “have to reduce production of drones.” The EU calculates Ukraine needs an extra €135 billion to keep going over the next two years, with the cash crunch hitting as soon as April.
German Chancellor Friedrich Merz, who’d been among those advocating for using the frozen assets, said the final loan decision still “sends a clear signal” to Putin.
Russia had explicitly warned EU leaders against touching its money, but Polish Prime Minister Donald Tusk said they had no choice but to “rise to this occasion.”
The agreement throws Kyiv a lifeline at a moment when diplomatic activity is reaching a fever pitch. US President Donald Trump has been pushing for a swift deal to bring Russia’s war to an end, and the pressure is building.
According to a White House official speaking to AFP, US and Russian officials are set to meet in Miami this weekend for more talks on a potential peace plan. Kremlin envoy Kirill Dmitriev is expected to sit down with Trump envoys Steve Witkoff and Jared Kushner.
Zelensky, meanwhile, announced that Ukrainian and US delegations would hold fresh talks Friday and Saturday in the United States. He said he wants Washington to spell out exactly what kind of guarantees it can offer to shield Ukraine from another invasion down the road.
