BRUSSELS — EU leaders reached a breakthrough agreement early Friday morning to provide Ukraine with a multi-billion euro loan package. The decision, announced by European Council President António Costa, secures funding for the next two years, ensuring Ukraine does not face a “cash crunch” by the second quarter of 2026.
Key Highlights of the Deal:
- The Amount: A total of €90 billion will be provided as an interest-free loan.
- The Source: Instead of using the principal of frozen Russian assets—a plan that faced heavy legal and political resistance—the EU will borrow the money from capital markets, backed by the EU common budget.
- The Repayment: Ukraine is only required to repay the loan once Russia pays war reparations. If Russia fails to do so, the frozen Russian assets (roughly €210bn in the EU) will serve as collateral to settle the debt.
- The Compromise: To ensure unanimity, Hungary, Slovakia, and the Czech Republic were granted exemptions, meaning they will not be financially liable for the loan guarantees.
Ukrainian President Volodymyr Zelenskyy hailed the move as “significant support that truly strengthens our resilience.”
