EU Approves €90 Billion Loan to Ukraine After Asset Deadlock

The European Union approved a €90 billion ($105 billion) interest-free loan for Ukraine on December 19, 2025, to support military and economic needs through 2027. The decision followed a deadlock during a Brussels summit over a proposal to fund the aid by seizing approximately €210 billion in frozen Russian Central Bank assets. While championed by German Chancellor Friedrich Merz and European Commission President Ursula von der Leyen, the asset-seizure plan was blocked by Belgium, which cited legal risks to the Euroclear clearing house and demanded unlimited liability guarantees from other member states.

To achieve unanimity, the EU adopted a compromise to borrow funds from capital markets backed by the EU budget. Hungary, Slovakia, and the Czech Republic secured opt-outs from the loan's financial obligations. Under the terms, Ukraine will only repay the loan after receiving reparations from Russia; however, the EU reserves the right to use immobilized Russian assets to settle the debt if Moscow fails to pay.

Russian President Vladimir Putin condemned the attempted seizure of assets as "daylight robbery" and warned of severe consequences for Western financial institutions. Meanwhile, Ukrainian President Volodymyr Zelenskyy hailed the loan as an "important victory" and a signal of resilience. The agreement comes amid pressure from U.S. President Donald Trump, who has urged a rapid end to the conflict and dispatched envoys to Miami to negotiate a peace framework with Russian and Ukrainian representatives.