By Blessing Nweke
European Union leaders have agreed to provide Ukraine with a €90bn (£79bn; $105bn) loan after failing to reach consensus on using frozen Russian assets, delivering a crucial financial lifeline to Kyiv as it faces an acute cash crunch.
The deal was struck after more than a day of tense negotiations at a summit in Brussels. EU leaders said the loan, backed by the bloc’s common budget, would help meet Ukraine’s military and economic needs over the next two years. “We committed, we delivered,” European Council President Antonio Costa wrote on X as he announced the agreement.
Ukrainian President Volodymyr Zelensky had urged leaders to unlock around €200bn in frozen Russian central bank assets to support his country. However, Belgium — where most of the funds are held — demanded guarantees on sharing potential legal and financial liability, conditions other member states were unwilling to accept.
Belgian Prime Minister Bart De Wever said the loan approach allowed leaders to avoid “chaos and division,” adding: “We remained united.”
Ukraine is only months away from running out of money. Zelensky warned that without fresh funding by spring, Kyiv would be forced to cut back drone production. The EU estimates Ukraine needs an additional €135bn to remain solvent over the next two years, with the most severe pressure expected to begin in April.
German Chancellor Friedrich Merz, who had supported using frozen Russian assets, said the final decision still “sends a clear signal” to Russian President Vladimir Putin. Russia has repeatedly warned the EU against confiscating its funds, though Polish Prime Minister Donald Tusk said Europe had to “rise to this occasion.”
The agreement comes amid intensified diplomacy as US President Donald Trump pushes for a rapid settlement to end the war. US and Russian officials are due to meet in Miami this weekend to discuss a peace plan, while Zelensky said Ukrainian and US delegations would hold further talks on Friday and Saturday to seek security guarantees against future aggression.
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