European Union leaders finalized a landmark €90 billion ($105 billion) loan package for Ukraine on Friday, December 19, 2025, opting to fund Kyiv's defense efforts through EU budget-backed borrowing rather than tapping frozen Russian assets. The decision, reached after intense negotiations in Brussels, underscores the bloc's commitment to supporting Ukraine while navigating legal and political complexities.
The agreement avoids immediate use of €210 billion in Russian state assets frozen within the EU since 2022, which will remain immobilized until Moscow compensates Ukraine for war damages. Belgian resistance to utilizing these funds – particularly from Euroclear, the Brussels-based financial institution holding most assets – proved decisive in shaping the current approach.
"This urgent support demonstrates our unwavering solidarity," stated EU summit chairman Antonio Costa during a pre-dawn press conference. The loan structure, requiring unanimous approval, overcame initial Hungarian objections through guarantees protecting member states' financial interests.
Analysts note the arrangement balances immediate military needs with long-term accountability measures. Should Russia eventually pay reparations, those funds would first repay the EU loan before reaching Ukrainian coffers. The deal comes as Ukraine enters its fourth winter of conflict, with Western military aid remaining critical to sustaining defense operations.
