European Fee President Ursula von der Leyen attends a press convention after the European Council assembly in Brussels, Belgium, Dec. 19, 2025. European Union leaders struck a deal Friday to supply Ukraine a 90-billion-euro mortgage to plug its looming finances shortfalls, however did not agree on utilizing frozen Russian property to give you the funds. AFP-Yonhap
BRUSSELS (Reuters) — Ukraine thanked the European Union on Friday for deciding to supply it with 90 billion euros ($105.46 billion) of help over the following two years – even when the bloc did not agree on an formidable plan to finance it utilizing frozen Russian property.
Russian President Vladimir Putin stated the EU had backed away from the plan to make use of its frozen property as a result of it will have confronted critical repercussions. The stakes for locating cash for Kyiv had been excessive as a result of with out the EU’s monetary assist, Ukraine would run out of cash within the second quarter of subsequent yr and more than likely lose the struggle to Russia, which the EU fears would convey the specter of Russian aggression in opposition to the bloc nearer.
“That is vital help that actually strengthens our resilience,” Ukraine’s President Volodymyr Zelenskiy wrote on the Telegram app after the settlement was reached at a summit of EU leaders. The choice adopted hours of discussions on the proposal for an unprecedented mortgage based mostly on Russia’s property, which turned out to be too politically demanding to resolve at this stage. As a substitute, the EU will borrow money.
Putin stated the preliminary plan to make use of Russia’s frozen property to again the mortgage would have amounted to “daylight theft.” “Why cannot this theft be carried out? As a result of the implications might be grave for the robbers,” he stated throughout his annual end-of-year press convention.
“This is not only a blow to their picture; it is an undermining of belief within the euro zone, and the truth that many international locations, not simply Russia, however primarily oil-producing international locations, retailer their gold and international change reserves within the euro zone.”
The principle issue for the reparation-loan plan was offering Belgium, the place 185 billion euros of the overall Russian property in Europe are held, with ample ensures in opposition to monetary and authorized dangers from potential Russian retaliation for the discharge of the cash to Ukraine.
German Chancellor Friedrich Merz, who had pushed exhausting for a reparations mortgage backed by the frozen Russian property, argued this was nonetheless an excellent deal.
“That is excellent news for Ukraine and dangerous information for Russia and this was our intention,” he stated.
Ukraine stated this was nonetheless vastly welcome. “Certainly, there are moments when one ought to needless to say ‘Good is the enemy of fine’. It was a protracted night time for European leaders however they had been in a position to give you a workable outcome,” stated Ukrainian Deputy International Minister Sergiy Kyslytsya.
Carsten Brzeski, international head of macro analysis at ING in Frankfurt, additionally welcomed the deal. “If Europe hadn’t discovered an answer, I need to say, it will have been a symbolic catastrophe,” he stated, including: “I feel there must be sufficient investor urge for food for the brand new mortgage.”
In the meantime, on the summit’s different main subject, Merz and European Fee President Ursula von der Leyen expressed confidence that the EU would have the ability to signal a contentious free commerce settlement with South American bloc Mercosur in January, regardless of inadequate backing on the summit.
