European Union (EU) leaders have agreed to provide Ukraine with a 90 billion euro loan backed by the EU budget after failing to agree on using frozen Russian assets. The agreement is expected to cover Ukraine’s military and economic needs for the next two years, which came after more than a day of talks at a summit in Brussels.
Ukrainian President Volodymyr Zelensky had urged leaders to use 200 billion euros of frozen Russian assets but Belgium, where the vast bulk of the cash is held, demanded guarantees on sharing liability that proved too much for other countries.
In another development, French President Emmanuel Macron said he believed it would be useful for Europe to re-engage with Russian President Vladimir Putin, while German Chancellor Friedrich Merz, who had pushed for the asset plan, said the final decision on the loan sends a clear signal to Moscow. The EU estimates Ukraine needs an extra 135 billion euros to stay afloat over the next two years.
The agreement comes amid intensified diplomacy, with upcoming US-Russia talks in Miami and renewed Ukraine-US discussions as Washington pushes for a quick end to the war.
