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EU Chooses €90 Billion Joint Loan for Ukraine After Stalemate on Russian Assets

Belgium’s resistance over liabilities blocked use of frozen Russian funds.

Overview

  • EU leaders reached the deal overnight from Thursday to Friday to borrow collectively and channel the funds to Kyiv.
  • Member states will share the repayment risk, and the loan is structured so Ukraine repays the EU only after receiving reparations from Russia.
  • Plans to tap frozen Russian assets, largely held in Belgium, failed to gain consensus as Belgium demanded firm cross-EU guarantees and cited potential reprisals.
  • The Netherlands pledged to back more than €13 billion of the risk, and leaders discussed but did not adopt eurobonds as an alternative.
  • Ukrainian community representatives in the Netherlands welcomed the financing yet argued frozen Russian holdings should cover the costs, not European taxpayers.