European Union leaders have agreed to provide Ukraine with a €90 billion loan, sourced from the bloc's common budget. This agreement was reached after discussions at a summit in Brussels, concluding more than a day of talks.
Loan Details and Context
The loan is intended to address Ukraine's military and economic requirements for the next two years. Ukrainian President Volodymyr Zelensky had previously advocated for the use of €200 billion in frozen Russian assets to fund these needs. However, Belgium, where a significant portion of these assets are held, requested guarantees regarding liability sharing that were not accepted by other member states.
EU chief Antonio Costa confirmed the agreement via social media, stating, "We committed, we delivered." The decision to proceed with a loan through borrowing, rather than utilizing frozen Russian assets, was noted by Belgian Prime Minister Bart De Wever as a move that maintained unity among EU leaders.
Ukraine faces a projected cash shortfall, with estimates suggesting it requires an additional €135 billion over the next two years. President Zelensky indicated that without financial support by spring, Ukraine would need to reduce drone production. German Chancellor Friedrich Merz, who had supported the asset utilization plan, stated that the final loan decision conveyed a clear message to Russia.
Related Diplomatic Developments
Concurrently, French President Emmanuel Macron expressed his view that it would be "useful" for Europe to re-engage in discussions with Russian President Vladimir Putin. Macron stated that finding a framework for such re-engagement in the coming weeks would be in the interest of both Europeans and Ukrainians.
In separate diplomatic efforts, a White House official informed AFP news agency that US and Russian officials are scheduled to meet in Miami for further talks on a peace plan. Kremlin envoy Kirill Dmitriev is expected to participate in discussions with US envoys Steve Witkoff and Jared Kushner.
Additionally, President Zelensky announced upcoming talks between Ukrainian and US delegations in the United States, scheduled for Friday and Saturday. He specified a desire for Washington to provide further details on potential guarantees to protect Ukraine from future invasions.