EU approves €90 billion loan for Ukraine, avoiding the use of frozen Russian assets
European Union leaders agreed overnight to provide Ukraine with a 90 billion euros loan for 2026 and 2027, avoiding the use of frozen Russian assets that had been considered but faced strong opposition.
The decision followed a marathon European Council meeting Thursday into early Friday. Caretaker Dutch Prime Minister Dick Schoof said the EU opted for a conventional loan because “a number of countries still saw the uncertainties as too great.” Schoof described himself as "extremely satisfied," noting that the loan allows Ukraine to move forward economically and militarily in 2026 and 2027.
He added that frozen Russian assets “remain available for reparations from Russia to Ukraine” and hailed the political win that countries opposed to aiding Ukraine directly, including Hungary, Slovakia, and the Czech Republic, did not block the plan.
Belgium had been the most vocal opponent of using Russian funds, citing legal risks and potential retaliation, as many assets are held by Euroclear in Brussels. Belgian Prime Minister Bart De Wever described the final arrangement as “a stable, legally sound, and financially credible European solution” and said failure to reach an agreement “would have been a total disaster. We would not only have abandoned Ukraine but also ourselves. Europe would have lost its geopolitical relevance.”
The loan is structured as EU borrowing backed by the EU budget and will be repaid by Ukraine only once reparations are received from Russia. According to the European Council, “any mobilization of resources of the Union’s budget as a guarantee for this loan will not have an impact on the financial obligations of the Czech Republic, Hungary, and Slovakia.”
European Commission President Ursula von der Leyen emphasized that the agreement ensures Ukraine’s urgent financing needs are met while keeping Russian assets immobilized. “Member States have agreed to finance Ukraine through EU borrowing on the capital markets for an amount of 90 billion euros for the next two years,” she said. “Ukraine would only need to pay back the loan once it receives reparations. Until then, the assets will remain immobilized.”
European Council President António Costa said the loan provides immediate relief and sends a clear political signal. “Today, we approved a decision to provide 90 billion euros to Ukraine for the next two years. Ukraine will only repay this loan once Russia pays reparations. The Union reserves its right to make use of the immobilized assets to repay this loan,” Costa said, adding that sanctions on Russia will continue.
Ukrainian President Volodymyr Zelenskyy, who addressed the Tweede Kamer earlier this week, welcomed the decision. “I am grateful to all leaders of the European Union for the European Council’s decision on 90 billion euros in financial support for Ukraine in 2026–2027. This is significant support that truly strengthens our resilience,” he said.
