EU Grants Ukraine €90 Billion Loan After Asset Seizure Fails

Following a series of contentious summits in Brussels, the European Union agreed on December 19, 2025, to provide Ukraine with an interest-free loan of €90 billion (approximately $105 billion) for military and economic needs through 2027. The funds will be raised via capital market borrowing backed by the EU budget headroom.

This compromise followed the collapse of a proposal to fund Ukraine using €210 billion in frozen Russian Central Bank assets. The reparations loan plan was blocked by Belgium, where the bulk of the assets are held at Euroclear, due to legal risks and fears of Russian retaliation. Internal fractures also emerged as France and Italy opposed the expropriation, reportedly undermining German Chancellor Friedrich Merz. To secure the necessary unanimity, the EU allowed Hungary, Slovakia, and the Czech Republic to opt out of the loan's financial obligations.

Russian President Vladimir Putin condemned the attempted asset seizure as "daylight robbery," warning that such actions undermine global trust in the eurozone. In response to the EU's immobilization of assets, the Bank of Russia filed lawsuits against Euroclear and vowed to seek damages from European banks in Russian courts.

President Volodymyr Zelenskyy hailed the loan as an "important victory" that strengthens national resilience. The agreement stipulates that Ukraine will only be required to repay the loan after receiving war reparations from Russia; otherwise, the EU reserves the right to use the immobilized Russian assets for repayment. Separately, the EU disbursed an additional €2.3 billion via the Ukraine Facility to support public administration and humanitarian needs.