EU Agrees to €90 Billion Loan for Ukraine Without Using Frozen Russian Assets

European leaders decided on Friday to finance Ukraine's war effort for at least two years through a joint loan of €90 billion, without resorting to frozen Russian assets due to lack of agreement. Kyiv risked running out of money as early as the first quarter of 2026.

EU leaders reached an agreement on Friday to provide Ukraine with a €90 billion loan to cover its imminent budget deficits but failed to agree on using frozen Russian assets to finance this amount.

The deal, reached around midnight during the summit in Brussels, offers Kyiv a vital lifeline as U.S. President Donald Trump pushes for a swift agreement to end the nearly four-year war with Russia.

"Today's decision will provide Ukraine with the necessary means to defend itself and support the Ukrainian people," said Antonio Costa, President of the European Council, who chaired the summit.

Ukrainian President Volodymyr Zelensky wrote on X that the agreement "is significant support that truly strengthens our resilience," adding: "It is important that Russian assets remain frozen and that Ukraine has received a financial security guarantee for the coming years."

In a message on Telegram, the Kremlin's chief economic negotiator, Kirill Dmitriev, welcomed the failure of the "illegitimate use of Russian assets to finance Ukraine," adding that "for now, law and common sense have won a victory."

After seeking a solution, EU leaders opted for a two-year loan guaranteed by the bloc's common budget.

The first option on the table was to use about €200 billion of frozen Russian central bank assets held in the EU to generate a loan for Kyiv.

But this plan was abandoned after Belgium, where most of the assets are located, demanded guarantees on sharing responsibilities, which proved too restrictive for other countries.

Prime Minister Bart De Wever told reporters at the end of the summit that he believed "rationality prevailed."

"This whole affair was so risky, so dangerous, and raised so many questions—it was like a sinking ship, like the Titanic. The die is cast now—and everyone is relieved."

German Chancellor Friedrich Merz had strongly supported the plan to use the assets but said the final decision on the loan "sends a clear signal" to Russian President Vladimir Putin.

European Commission President Ursula von der Leyen said Ukraine should only repay the loan when Moscow pays for the damages caused.

Using joint debt requires unanimous approval from the 27 EU countries, and skeptical Hungary, Slovakia, and the Czech Republic obtained an exemption to avoid a deadlock.

"It's moral"

The EU estimates Ukraine needs an additional €135 billion to stay afloat over the next two years, with a liquidity crisis expected as early as April.

Zelensky told EU leaders at the start of the summit on Thursday that using Russian assets was the right path.

"Russian assets must be used to defend against Russian aggression and rebuild what has been destroyed by Russian attacks. It is moral. It is right. It is legal," Zelensky said.

Although Kyiv may be disappointed that the EU did not take the step with the assets, securing funding by other means remains a relief.

Zelensky told leaders that Kyiv needed a decision before the end of the year and that putting his country on a firmer footing could give it more leverage in negotiations to end the war.

Ukraine, negotiations with the United States

Alongside EU discussions, Washington has pushed its own efforts to forge an agreement to end the war.

So far, Washington has largely kept Europe out of the negotiations, but French President Emmanuel Macron said it was time for the continent to start talking directly with Moscow.

"I believe it is in our interest as Europeans and Ukrainians to find the right framework to reengage this discussion," he said, adding that Europeans should find ways to do so "in the coming weeks."

Zelensky announced that Ukrainian and American delegations would hold new talks on Friday and Saturday in the United States.

He said he wanted Washington to provide more details on the guarantees it could offer to protect Ukraine from a new invasion.

"What will the United States of America do if Russia returns with a new aggression?" he asked. "What will these security guarantees do? How will they work?"

Trump nevertheless maintained pressure on Kyiv, saying again that he hoped Ukraine would "move quickly" to conclude a deal.