The agreement – which came after more than a day of talks at a summit in Brussels – offers Kyiv a desperately needed lifeline as US President Donald Trump pushes for a quick deal to end Russia’s war.
“We have a deal. Decision to provide €90 billion of support to Ukraine for 2026-2027 approved,” EU chief Antonio Costa wrote on X. “We committed, we delivered,” he said.
After scrambling around for a solution, EU leaders settled on coming up with a loan backed by the bloc’s common budget.
The number one option on the table had been to tap some €200 billion of Russian central bank assets frozen in the EU to generate a loan for Kyiv.
However, that scheme fell by the wayside after Belgium, where the vast bulk of the assets are held, demanded guarantees on sharing liability that proved too much for other countries.
German Chancellor Friedrich Merz had pushed hard for the asset plan – but still said the final decision on the loan “sends a clear signal” to Russian President Vladimir Putin.
‘It’s moral’
The EU estimates Ukraine needs an extra €135 billion (US$159 billion) to stay afloat over the next two years, with the cash crunch set to start in April.
Ukraine’s President Volodymyr Zelensky had told EU leaders at the start of the summit yesterday that using Russian assets was the right way to go.
“Russian assets must be used to defend against Russian aggression and rebuild what was destroyed by Russian attacks. It’s moral. It’s fair. It’s legal,” Zelensky said.
While Kyiv may be left disappointed that the EU did not take the leap to use the Russian assets – securing financing another way will still be a relief.
Zelensky told the leaders that Kyiv needed a decision by the end of the year, and that putting his country on a firmer financial footing could give it more leverage in talks to end the war.
Ukraine, US talks
Bubbling close to the surface of the EU’s discussion are the US efforts to forge a deal to end the war.
Zelensky announced Ukrainian and US delegations would hold new talks today and tomorrow in the US.
He said he wanted Washington to give more details on the guarantees it could offer to protect Ukraine from another invasion.
“What will the US do if Russia comes again with aggression?” he asked.
“What will these security guarantees do? How will they work?,” Zelensky asked.
Trump nonetheless kept the pressure on Kyiv, saying again he hopes Ukraine “moves quickly” to agree a deal.