On Friday, December 19, 2025, European Union leaders agreed to borrow 90 billion euros (€90B) from the EU budget to loan to Ukraine for its defense against Russia over the next two years, sidestepping an unprecedented plan to finance Kyiv with frozen Russian sovereign assets totalling 210 billion euros.
The move comes after hours of talks in Brussels, where leaders also gave the European Commission a mandate to keep working on a reparations loan based on Russian immobilized assets, an option that remains unworkable for now due to resistance from Belgium, which holds the bulk of those funds.
"Today we approved a decision to provide 90 billion euros to Ukraine," EU summit chairman Antonio Costa said. "As a matter of urgency, we will provide a loan backed by the European Union budget."
Initially, unanimity was a hurdle, with Hungary's prime minister, Viktor Orban, opposing EU borrowing. In the end, Hungary, Slovakia and the Czech Republic agreed to let the scheme proceed on the condition it would not impact their own finances.
Under the deal, the 210 billion euros in frozen Russian assets will stay immobilized until Moscow pays reparations to Ukraine. If Russia ever takes that step, Ukraine could use the assets to reimburse the EU, paving the way for eventual repayment without adding to EU taxpayers' burden.
With this financing mechanism in place, Ukraine gains a clear funding path through 2027, while the European Commission continues to explore sustainable reparations frameworks as part of long-term support for Kyiv.
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EU agrees 90-bn-euro loan for Ukraine, won't use frozen Russian assets
cgtn.com
