EU Backs €90 Billion Ukraine Loan as Plan to Tap Frozen Russian Assets Stalls

Overview

• Leaders approved a zero‑interest package for 2026–2027 to be raised through joint EU borrowing by 24 countries, with Hungary, the Czech Republic and Slovakia opting out.
• Talks on a reparations‑style loan backed by immobilized Russian state assets collapsed after Belgian objections, leaving the assets frozen indefinitely.
• Summit conclusions state the bloc reserves the right to use frozen Russian assets to repay the new loan if Moscow refuses to pay reparations.
• Politico reported a dour mood within the European Commission after the failed push to tap the assets, reflecting dashed ambitions and legal red lines.
• The Guardian assessed the funding is unlikely to improve Ukraine’s battlefield position, and Russia’s Foreign Ministry claimed Kyiv will never repay the debt.