EU Agrees €90bn Loan to Ukraine After Asset Dispute
19th Dec. 2025
European Union leaders have agreed to provide Ukraine with a €90 billion loan. This loan provides Kyiv a crucial financial lifeline after failing to reach a consensus on using frozen Russian assets. The deal was struck after more than a day of intense talks at a Brussels summit. Leaders after the deal said, “It is intended to cover Ukraine’s military and economic needs over the next two years”.
“We committed, we delivered,” EU chief Antonio Costa wrote on X. In a post, he also confirmed that the loan would be backed by the bloc’s common budget. As a result, leaders avoided a standoff that could have delayed much-needed funds as Ukraine faces a deepening financial crunch.
Stalls in Russian Asset Plan unlocked EU-Ukraine Loan Deal
Initially, Ukrainian President Volodymyr Zelensky had pressed EU leaders to unlock nearly €200 billion of frozen Russian assets. However, Belgium, where most of the funds are held, sought guarantees on shared liability. Since other member states were unwilling to accept those terms, the proposal stagnated.
Instead, EU leaders opted to raise money through joint borrowing. Belgian Prime Minister Bart De Wever said the decision prevented “chaos and division”, adding, “We remained united”. Meanwhile, German Chancellor Friedrich Merz, who had supported the asset seizure plan, said the loan agreement “sends a clear signal” to Russian President Vladimir Putin.
Notably, Russia had warned the EU against using its frozen funds. Nevertheless, Polish Prime Minister Donald Tusk argued leaders needed to “rise to this occasion”, by stressing the scale of Ukraine’s financial emergency.
According to EU estimates, Kyiv requires an additional €135 billion over the next two years. Without fresh funds by spring, Zelensky stressed Ukraine would “have to reduce production of drones”, underlining the immediate risks to its defence capabilities.
After Ukraine’s cash crunch, EU diplomacy intensifies
Alongside the financial decision, diplomatic activity has accelerated. French President Emmanuel Macron said it would be “useful” for Europe to re-engage with Vladimir Putin. He argued further that Europeans should find a framework to reopen discussions “in the coming weeks”.
At the same time, the loan agreement comes as US President Donald Trump pushes for a swift settlement to end the war. As per the report, US and Russian officials are expected to meet in Miami this weekend for talks on a potential peace plan. Furthermore, Kremlin envoy Kirill Dmitriev may also meet Trump advisers Steve Witkoff and Jared Kushner.
Meanwhile, Zelensky confirmed that Ukrainian and US delegations would hold further talks in US on Friday and Saturday. He said he wanted clearer details on the security guarantees the US could offer to protect Ukraine from another invasion. Overall, while the €90 billion loan falls short of Kyiv’s original demands, EU leaders say it would ensures stability for now.
Web Resources on the Agreement EU and Ukraine
1. TheGuardian.com: EU leaders agree €90bn loan, but without use of frozen Russian assets
2. FinancialTimes.com: EU agrees €90bn loan to Ukraine after frozen Russian asset plan fails
3. Politico.eu: EU agrees to €90B Ukraine loan, but assets plan fails
4. X.com: Tweet from Antonio Costa
5. AcademicBlock.com: European Union – History and Purposes