Archive · 20 Dec 2025
EU Agrees $106 Billion Loan to Ukraine, Sidesteps Frozen Russian Assets
The European Union has decided to give Ukraine $106 billion to help with its budget and defense against Russia.
They wanted to use money that was frozen from Russia, but they couldn't agree on how to do that.
So, they decided to borrow the money instead.
Russia said they were happy that the EU didn't use their frozen money.
Ukraine is thankful for the help, but they had hoped the EU would use the Russian money.
The leader of Russia, Vladimir Putin, said he wants to end the war, but only if Ukraine gives up some of its land and doesn't join NATO.
The war has been going on for a long time, and many people have been hurt or killed.
The EU and Ukraine are worried that if they don't get enough money, Ukraine might lose the war.
The EU agreed to provide Ukraine with a $106 billion loan to support its budget and defense against Russia.
The plan to use frozen Russian assets was put on hold due to disagreements, particularly from Belgium.
Ukraine needs an estimated $159 billion over the next two years to stay afloat.
Russia welcomed the EU's decision not to use its frozen assets, calling it a victory for 'law and sanity'.
Vladimir Putin reiterated Russia's terms for ending the war, which include Ukraine abandoning NATO ambitions and withdrawing from four regions claimed by Russia.
- Who
- European Union, Ukraine, Russia, Belgium, Germany, Vladimir Putin, Volodymyr Zelensky, Donald Trump
- What
- EU agrees to provide a $106 billion loan to Ukraine, sidesteps using frozen Russian assets
- When
- Decision made on Friday, to be used in 2026-2027
- Where
- Brussels, Belgium
- Why
- To help Ukraine catch up on its budget shortfall and fund its defense against Russia
- Loan Amount
- $106 billion (90 billion euros)
- Duration
- 2026-2027
- Russian Frozen Assets
- 200 billion euros (not used)
- Ukraine's Funding Need
- $159 billion (135 billion euros) over two years
- Belgium's Role
- Holds 185 billion euros of Russian assets in Europe
- German Bond Yields
- Up 1.5 basis points to 2.864%
- Putin's Stance
- No compromise on Ukraine, terms unchanged since June 2024
- EU's Reserve
- Reserved right to use Russian assets for loan repayment if Russia doesn't pay war reparations
Sources
Putin warns of 'severe consequences' for 'robbers' who use Russian frozen assets
Ukraine Welcomes 90 Billion-Euro EU Loan, Despite Lack Of Deal On Russian Assets
Putin signals no compromise on Ukraine at annual press marathon
EU agrees €90 Billion support package for Ukraine, sidesteps frozen Russian assets plan
Ukraine welcomes 90 billion-euro EU loan, despite lack of deal on Russian assets
Markets quietly welcome EU shift to joint borrowing for Ukraine loan
EU approves a mega 90 billion Euro ‘grant’ for Ukraine in the guise of a loan, to continue the war with Russia for another two years
Who is paying for Europe’s €90bn Ukraine loan?
