EU Releases 90 Billion Euros for Ukraine Without Using Frozen Russian Assets

Europeans decided on Friday to finance Ukraine's war effort for at least two years through a joint borrowing of 90 billion euros, but without resorting to Russian assets due to lack of agreement. Ukrainian President Volodymyr Zelensky welcomed this decision, stating that "this is significant support that truly strengthens our resilience."

Financing Ukraine's war effort for at least two years. This is what Europeans decided on Friday, December 19, through a joint borrowing of 90 billion euros, but without using Russian assets due to no agreement on this unprecedented solution.

The leaders of the 27 member states had to find a sustainable solution for Kyiv at all costs, as it risked running out of money as early as the first quarter of 2026. They had committed to providing the bulk of financial and military support after the American funding was cut off by President Donald Trump.

"This is a decisive message to end the war, because (Vladimir) Putin will only make concessions when he understands that his war will bring him nothing," said German Chancellor Friedrich Merz after the agreement was reached late at night in Brussels.

The German leader had been supporting for months the use of frozen Russian assets in Europe to finance this loan. He left Brussels without success and was also forced to accept a delay in signing a free trade agreement with the South American Mercosur countries, secured by France and Italy.

"This is significant support that truly strengthens our resilience," reacted Ukrainian President Volodymyr Zelensky, who had traveled to Brussels to emphasize his message, thanking European leaders. "It is important that Russian assets remain frozen and that Ukraine has received a financial security guarantee for the coming years," he wrote on the social network X.

Volodymyr Zelensky was only partially heard, after also tirelessly advocating for making Russia pay. Ukraine is nevertheless assured of having the necessary funds as fighting continues despite intense ongoing negotiations.

"We kept our promise"

Due to lack of agreement on using the Russian central bank's assets, a completely unprecedented and high-risk measure, the 27 rallied around a joint loan. "We committed, we kept our promise," European Council President Antonio Costa said to the press, having led the summit's work.

"Guaranteeing 90 billion euros to another country for the next two years, I don't think this has ever happened in our history," said Danish Prime Minister Mette Frederiksen, whose country holds the EU Council presidency until the end of the year. Now, "it will become useful again to talk to Vladimir Putin," said French President Emmanuel Macron.

Kyiv's financing needs were estimated at 137 billion euros, with the European Union committing to cover two-thirds, or 90 billion euros. The rest is to be provided by other Ukraine allies, such as Norway or Canada.

The 27 will grant Kyiv a zero-interest loan, financed by the EU budget, which Ukraine will only have to repay if Russia pays reparations, European Commission President Ursula von der Leyen explained to the press.

"After long discussions," it is clear that resorting to Russian assets "requires more work," a European official acknowledged anonymously on the night between Thursday and Friday.

An agreement had been blocked for weeks by Belgium's strong reluctance, where most of these frozen assets—about 210 billion euros—are located. The idea was to use them to finance a "reparations loan" of 90 billion euros for Ukraine. Hours of negotiations, first among diplomats and then at the level of European leaders gathered Thursday evening in a conclave, failed to reach a compromise.

"The die is cast"

Belgian Prime Minister Bart De Wever had, since October, demanded from his partners almost unlimited guarantees to guard against the risk of early repayment or Russian retaliation. And while other EU countries said they were ready to show solidarity, they refused to sign a blank check to Belgium.

"The die is cast, everyone is relieved," said the Belgian Prime Minister, smiling, at the end of this high-risk summit. The loan agreement was reached by 27, but the operation will only be carried out by 24, with Hungary, Slovakia, and the Czech Republic—three countries reluctant to financially support Ukraine—being exempted.

The American president grew impatient again on Thursday, urging Ukraine to "move quickly" before Russia "changes its mind."