EU Leaders Agree on €90 Billion Interest-Free Loan to Ukraine as 'Plan B' to Use Russian Assets

EU leaders approve a €90 billion loan to Ukraine.

SUMMARY

European leaders decided to grant a €90 billion interest-free loan to Ukraine, covering a large part of its financial needs for two years, while failing to agree on the use of frozen Russian assets to fund military aid.

KEY HIGHLIGHTS

€90 billion interest-free loan granted to Ukraine.
This loan covers two-thirds of Ukraine's financial needs for the next two years.
Disagreement over the use of frozen Russian assets to finance military aid.

CORE SUBJECT

European loan to Ukraine

European Union leaders agreed on December 19 to provide a €90 billion interest-free loan to Ukraine. This joint borrowing will cover two-thirds of the country's financial needs for the next two years. While praised by several European leaders as a clear sign that the bloc supports Ukraine, this agreement comes as they failed to reach a consensus on a plan to use frozen Russian assets to finance military aid to Ukraine, reports Dave Keating, FRANCE 24 correspondent in Brussels.

KEYWORDS

European Union Ukraine interest-free loan frozen Russian assets military aid

MENTIONED ENTITIES 4

European Union

🏛️ Organization

Political and economic bloc of European countries

Ukraine

📍 Location_Country

Country receiving the loan

Dave Keating

👤 Person_Male

FRANCE 24 correspondent in Brussels

FRANCE 24

🏛️ Organization

French international media outlet

KEY DECISIONS 1

Grant a €90 billion interest-free loan to Ukraine.

Decision Maker: European Union leaders

Status: Approved

Announced: 2025-12-19

Impact Areas:

Ukraine financing economic aid