European Union leaders have agreed on a 90 billion euros loan for Ukraine, but it will be financed from the bloc’s budget, not frozen assets of aggressor Russia, the BBC reports.
The agreed sum will cover Ukraine’s economic and military needs for the next two years. Announcing the decision, European Council President António Costa said the bloc had done what it had promised.
Ukrainian President Volodymyr Zelensky has called on Europeans to use 200 billion euros of frozen Russian assets, but Belgium, which holds most of the assets, has opposed the move. The Belgians have demanded guarantees of joint responsibility in the event of problems, which has proven to be asking too much of other countries.
Meanwhile, French President Emmanuel Macron has spoken of the need to reconnect with the Russians, marking another shift in his stance.
Belgian Prime Minister Bart De Wever said on the morning of the 19th of December that
EU leaders had avoided division and chaos
by deciding to issue a loan by borrowing money rather than using frozen Russian assets.
Ukraine is facing a cash crunch, and Zelensky has previously said that without aid, Ukraine would have to reduce its production of drones. EU estimates show that Ukraine needs 135 billion euros in the next two years.
German Chancellor Friedrich Merz said that the decision to issue the loan sends a clear signal to Russian dictator Vladimir Putin. Russia has warned the EU not to use the frozen assets, but Polish Prime Minister Donald Tusk has said it will come eventually.
The loan agreement provides Kyiv with desperately needed aid at a time when US President Donald Trump is pressing for a swift end to the war. US and Russian officials are due to meet in Miami over the weekend, while Ukrainians will meet with the Americans on Friday and Saturday. Zelensky has said he wants to learn more about the security guarantees offered by Washington.
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