European Union Approves €90 Billion Funding for Ukraine

EU leaders approved a new funding plan to support Ukraine worth €90 billion, reflecting Brussels' determination to continue financial support for Kyiv amid differing positions among member states regarding the use of frozen Russian assets and the implications of the decision on the course of the war with Russia.

French President Emmanuel Macron confirmed that Paris did not object to using the frozen Russian funds, considering it useful to talk again with Russian President Vladimir Putin, and emphasized the necessity for Europeans and Ukrainians to find a formula to end the war.

He also stated that France has fulfilled its commitments regarding support for Ukraine.

Debate over Russian assets

The German Chancellor confirmed that the EU's decision to lend to Ukraine was unanimous, stressing the EU's right to use the frozen Russian assets if compensation is not paid to Ukraine, while maintaining the freeze on these funds until that happens.

The German Chancellor added that EU leaders showed clear determination to finance Ukraine, considering that European financial support sends a clear message to Russian President Vladimir Putin.

Avoiding division and chaos

Meanwhile, the Belgian Prime Minister said that approving the loan for Ukraine spared the EU from division and chaos, affirming that Ukraine won by securing European funding.

In contrast, the Hungarian Prime Minister announced that his country will not participate in financing Ukraine, describing the EU plan in this regard as wasted money.

Amid the ongoing Russia-Ukraine war, the EU continues its efforts to financially support Ukraine to cover its military and economic needs for the coming years.

Brussels proposed an unprecedented framework to finance Ukraine through a €90 billion loan, to be provided during 2026 and 2027, aiming to fill the large funding gap Kyiv faces.

This funding is part of a broader plan totaling up to €210 billion, including the possibility of using frozen Russian assets held by EU countries since the 2022 war as guarantees for the loan, within what is known as the "compensation loan," which is expected to be repaid when Russia pays compensation to Ukraine later.

This proposal sparked controversy within the bloc, especially from countries like Belgium that had reservations about using frozen assets due to legal and financial concerns, prompting leaders to seek alternative financing formulations to ensure continued support without raising legal risks.

The EU had previously frozen about €210 billion of Russian assets within its borders since 2022, an exceptional measure ensuring these funds remain unspendable until the war ends or compensation is paid, representing one of the potential sources to finance support for Ukraine.