BRUSSELS, Dec 19 (KUNA) -- European Union leaders reached an agreement early Friday to provide Ukraine with a 90 billion euros loan to cover its expected budget shortfalls, but failed to agree on using frozen Russian assets to finance the loan due to strong opposition from Belgium.
The agreement, reached during overnight talks at an EU summit in the Belgian capital Brussels, offers Kyiv a vital financial support.
European Council President Antonio Costa, who chaired the summit, told a press conference that "todayآ’s decision will provide Ukraine with the necessary means to defend itself and to support the Ukrainian people." Costa added, "In October, we decided that the European Union would cover Ukraineآ’s pressing financial needs for 2026 and 2027. Last week, we decided that Russia would not get its assets back until Moscow ends its aggression. Today, we approved a decision to provide 90 billion euros to Ukraine for the next two years." He explained that the EU will urgently provide a loan backed by the blocآ’s budget to address Ukraineآ’s immediate financial needs, noting that "Ukraine will only repay this loan once Russia pays reparations." He stressed that the Union "reserves its right to make use of the immobilised assets to repay this loan," while EU leaders agreed to give the European Commission a mandate to continue work on the Reparation Loan based on frozen Russian assets.
In the same context, Costa announced that EU leaders also agreed to roll over sanctions against Russia, stressing that "our goal is not to prolong the war," but to contribute to achieving "a just and lasting peace" in Ukraine.
He added, "The only way to bring Russia to the negotiation table is to strengthen Ukraine. Todayآ’s decisions will provide Ukraine with the necessary means to defend itself and to support the Ukrainian people." (end) arn.mt