Dec 19, 2025
EU agrees to €90B Ukraine loan — but VDL and Merz suffer defeat as assets plan fails
Ultimately, funding to Kyiv is secured, but not the way most of the EU wanted.
Belgian Prime Minister Bart De Wever, who had pushed the backup plan based on EU joint debt. | Olivier Hoslet/EPA
BRUSSELS — European governments failed to reach a deal on sending
Russian frozen state assets to Ukraine after a 16-hour summit in
Brussels, in a major setback for German Chancellor Friedrich Merz and
European Commission President Ursula von der Leyen.
- Countries were forced instead to agree on an emergency backup plan based on
- In a further blow to EU unity, three countries ― Hungary, Slovakia and the Czech Republic ― won't take part.
TOP STORIES EU leaders agree to a €90 billion loan for Ukraine
Europe will pay in blood if Ukraine does not get funding – Zelenskiyy
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18 December, 15:28
Volodymyr Zelenskyy. Stock photo
President Volodymyr Zelenskyy has said that it is in Europe's interests to support Ukraine financially, because otherwise there will be a far greater risk of the war spreading to the EU.
Source: Zelenskyy at a press conference after attending a European Council meeting, as reported by European Pravda
EU leaders agree on 90 billion euro loan to Ukraine after plan to use Russian assets unravels
European Union leaders agreed on Friday to provide a massive interest-free loan to Ukraine to meet its military and economic needs for the next two years, but they failed to bridge differences with Belgium that would have allowed them to use frozen Russian assets to raise the funds.
After almost four years of war, the International Monetary Fund estimates that Ukraine will need 137 billion euros ($161 billion) in 2026 and 2027. The government in Kyiv is on the verge of bankruptcy, and desperately needs the money by spring.
