European Union leaders have agreed to borrow funds to provide up to €90 billion ($105 billion) in loans to Ukraine to support its defence against Russia over the next two years, opting not to use frozen Russian sovereign assets due to legal and political divisions among member states.
The decision was reached after prolonged talks in Brussels, with EU leaders concluding that the controversial proposal to finance Kyiv directly with immobilised Russian assets was not workable at this stage. While the assets estimated at €210 billion within the EU will remain frozen, disagreements over potential legal risks prevented their immediate use.
“Today we approved a decision to provide €90 billion to Ukraine,” European Council President Antonio Costa told reporters early Friday. He said the funding would be delivered urgently through EU-backed borrowing, with the loan guaranteed by the bloc’s budget.
Resistance to Use of Russian Assets
The use of Russian assets proved especially contentious for Belgium, which holds the largest share of the frozen funds. Belgian officials sought firm legal guarantees to shield the country from potential Russian lawsuits, diplomats said. As a result, EU leaders instead mandated the European Commission to continue exploring a future “reparations loan” mechanism linked to the assets.
The borrowing plan initially faced resistance from Hungary, whose Prime Minister Viktor Orbán has taken a Russia-friendly stance. However, Hungary, Slovakia, and the Czech Republic eventually allowed the scheme to proceed after assurances that it would not impose direct financial costs on them.
EU leaders reaffirmed that Russian assets will remain frozen until Moscow pays war reparations to Ukraine. Should that occur, Ukraine could use the funds to repay the EU loan. German Chancellor Friedrich Merz described the decision as “good news for Ukraine and bad news for Russia.”
Putin Criticism
The move also appeared aimed at countering claims by U.S. President Donald Trump that Europe has been weak in supporting Ukraine. Trump has been pushing for an end to the conflict, now the deadliest in Europe since World War Two.
Russian President Vladimir Putin criticised the EU’s approach, accusing it of attempting “daylight robbery” by targeting Russian assets. Speaking on Friday, Putin said he remained open to negotiations but insisted that responsibility for advancing peace lay with Ukraine and its European backers.
“President Trump is making serious efforts to end this conflict,” Putin said. “The ball is entirely in the court of our Western opponents, primarily the leaders of the Kyiv regime and their European sponsors.”
