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EU leaders have struck a deal to lend €90bn to Ukraine, borrowed against the bloc’s shared budget, after a proposal to use immobilised Russian sovereign assets collapsed.
The financial agreement represents a critical lifeline for Ukraine, and comes as Europe seeks to assert its right to influence US-led peace talks to end Russia’s almost four-year long war against Kyiv.
“We committed, we delivered,” EU Council president António Costa wrote on social media platform X.
EU capitals have for months wrestled over using €210bn of cash belonging to Russia, most of which is held in Belgium, to back a so-called reparations loan for Kyiv.
Belgium had demanded expansive guarantees to cover any financial risk from the loan, which led other leaders to reject those terms, according to officials briefed on the discussions.
Ukraine has warned that it faces collapse in early 2026 without additional support. EU leaders had pledged not to leave a summit in Brussels without agreeing some form of financial aid.
After more than 16 hours of discussions among EU leaders, they agreed in the early hours of Friday to raise a loan of €90bn on capital markets, secured against untapped spending in the bloc’s shared budget, to fund Ukraine for the next two years.
The agreement to borrow against EU taxpayer funds rather than Russia’s cash is a political blow to German Chancellor Friedrich Merz and European Commission President Ursula von der Leyen, who had championed the reparations loans and sought to pressure Belgium’s Prime Minister Bart De Wever to lift his objections.
Ukraine will only have to pay back the loan after Russia has paid reparations, according to the summit’s conclusions.
“We make it very clear: If Russia does not pay reparations we will . . . make use of Russian immobilised assets for paying back the loan,” Merz said in a statement.
“We always said that this was about getting Kyiv the money,” said one EU official involved in the negotiations. “Not about how.”
Belgium demanded “uncapped” risk sharing from EU countries against litigation and retaliation risks from Russia, according to an earlier proposal discussed by the leaders, who collectively decided that they could not agree to that maximalist approach.
France and Italy led calls for an alternative proposal using the bloc’s shared budget, the officials added.
The €90bn loan plan agreed at the summit would “not have any financial obligations of Czech Republic, Hungary and Slovakia”, the leaders agreed.
Those three countries had previously said they would not support using EU cash to fund Ukraine.
“They don’t have to pay — but we will make them pay for it [politically],” said a senior European official.