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EU Secures 90 Billion Euros in Loans for Ukraine's Urgent Needs
2025-12-19 22:55:10
Europe
Ukraine
Conflicts

EU Secures 90 Billion Euros in Loans for Ukraine's Urgent Needs

European Union leaders have reached a significant agreement to provide Ukraine with 90 billion euros in interest-free loans over the next two years. This funding aims to meet the urgent military and budgetary needs of Ukraine amidst ongoing conflict.

The loans will be secured against the EU budget, ensuring swift financial support. Additionally, frozen Russian assets will remain blocked until reparations are paid, with the potential for the EU to utilize these assets for loan repayment if Russia defaults.

The issuance of eurobonds marks a strategic move away from relying solely on frozen assets, reinforcing the EU's commitment to supporting Ukraine while safeguarding its financial integrity. This collaboration highlights the EU's determination to bolster Ukraine's resilience during a critical period.

Related news on that topic:

Can EU Leaders Agree on Using Frozen Russian Assets for Ukraine?

The recent EU summit in Brussels concentrated on a contentious plan to use frozen Russian assets as financial aid for Ukraine. This proposal, spearheaded by Poland's Prime Minister Donald Tusk, has faced mixed reactions among EU leaders. Belgium, under Prime Minister Bart De Wever, expressed apprehension regarding the legal ramifications and potential Russian retaliation, emphasizing a need for shared European responsibility. Meanwhile, EU Commission President Ursula von der Leyen and Germany's Friedrich Merz showed optimism about finding common ground. Despite the push for unity, dissent is evident. Italy and Hungary voiced concerns over the geopolitical implications, warning against granting Moscow a symbolic victory. Nevertheless, the urgency of supporting Ukraine, described by von der Leyen as crucial for European defense, is a driving force behind the initiative. The plan aims to showcase EU resolve against Russian aggression, yet it also raises debates about setting a precedent for asset seizure. Some worry about the broader impact on EU credibility and financial stability, highlighting the complexities of this high-stakes diplomatic maneuver.

EU Leaders Sign Treaty for Ukraine Claims Amid Asset Controversy

European leaders have taken a significant step by signing a treaty to establish the International Claims Commission of Ukraine, aimed at addressing war damages caused by the ongoing conflict. This initiative reflects a broader commitment to support Ukraine amidst its challenges. Concurrently, discussions within the EU are intensifying regarding the use of frozen Russian assets, potentially amounting to €210 billion, to finance Ukraine’s reparations and military needs. However, this proposal has sparked divisions among member states, with concerns about legal implications and possible retaliation from Russia. Leaders emphasize the urgency of a decision, as failure to act could undermine the EU's credibility. Amid these discussions, Russian President Vladimir Putin has dismissed Western narratives of war hysteria, asserting that Russia remains steadfast in its objectives. As the situation unfolds, the balance between supporting Ukraine and navigating geopolitical tensions remains a pivotal challenge for European unity.

Read 5 more recent news on this topic

The press radar on this topic:

The Guardian
19. Dezember 2025 um 17:30

Ukraine war live: Zelenskyy says EU agreement to loan €90bn to Kyiv ‘truly strengthens our resilience’

EU leaders have agreed to provide Ukraine with an €90bn interest-free loan for two years. The loan is secured against the EU budget and will enable Ukraine to cover its urgent needs. Immobilised Russian assets remain blocked until Russia pays war reparations, estimated at over €600bn by Zelenskyy. If Russia fails to pay, the EU reserves the right to use these assets to repay the loan. This agreement provides a crucial financial lifeline to Ukraine.
DER SPIEGEL
19. Dezember 2025 um 02:14

Brussels: EU states agree on financial support for Kyiv amounting to 90 billion euros - DER SPIEGEL

The heads of state and government of the EU have agreed on further support for Ukraine amounting to 90 billion euros for the next two years. Chancellor Friedrich Merz stated that this is an interest-free loan to Kyiv, which is intended to cover Ukraine's military needs and budget. The Russian assets frozen in the EU will be retained until compensation is provided by Russia.
EL PAÍS
19. Dezember 2025 um 17:10

Eurobonds to Finance Ukraine: The Emergency Lever that Avoids the EU Disaster

EU leaders have agreed to issue eurobonos to fund Ukraine's needs. The decision allows for 90 billion euros in funding for civil and military projects. Russia's frozen assets were deemed unreliable, prompting the use of eurobonos as an alternative. Lucas Guttenberg, a German researcher, notes that EU leaders typically comply with agreements made at EU summits. This compromise ensures that Ukraine receives necessary funds without risking EU finances.
Tagesschau - Internationale Nachrichten aus aller Welt
19. Dezember 2025 um 16:41

Ukraine Financing What does Berlin say about the EU compromise?

The federal government has agreed to the EU compromise on Ukraine aid. Although the frozen Russian assets are not to be used for support, Chancellor Friedrich Merz considers this a success of his policy. However, the Greens see Merz as 'somewhat failed' through the compromise, while the CDU and SPD support him.
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