Brussels, December 2025 — In a landmark decision, European Union leaders have approved a €90 billion loan package to support Ukraine’s military and economic stability over the next two years. The move underscores Europe’s commitment to Kyiv but also reveals the bloc’s caution: the funds will come from the EU’s own budget, not from frozen Russian assets.
💶 What Was Decided
- Loan Size: €90bn, spread across 2026–2027.
- Purpose: To bolster Ukraine’s defense, keep its economy afloat, and signal long-term EU backing.
- Mechanism: Backed by the EU’s common budget, ensuring predictable disbursement.
⚖️ Why Not Russian Assets?
Ukraine had urged the EU to redirect €200bn+ in frozen Russian central bank reserves, most held in Belgium. But member states balked:
- Legal Risks: Seizing sovereign assets could trigger lawsuits and destabilize financial markets.
- Financial Liability: Belgium and others warned of exposure if Russia retaliated through litigation.
- Political Balance: Leaders sought to avoid escalating tensions while maintaining sanctions pressure.
🗣️ Voices from Brussels
European Council President Antonio Costa hailed the agreement: “We committed, we delivered.”
French President Emmanuel Macron added nuance, suggesting Europe should consider re-engaging with Vladimir Putin — a remark that may foreshadow diplomatic recalibration.
🌍 Implications
- For Ukraine: The loan provides stability but is smaller than what Russian assets could have offered.
- For the EU: Demonstrates unity but increases internal financial strain.
- For Russia: Assets remain frozen, but not yet redirected — leaving Moscow’s lawsuits against Euroclear unresolved.
