Top Headlines

Feeds

EU Approves $105 Billion Ukraine Loan, Defers Frozen Russian Asset Plan

Updated (6 articles)

EU Leaders Finalize $105 Billion Loan on Dec 18‑19 The European Council concluded on 18 December 2025 that the bloc will raise $105 billion from international investors to fund Ukraine through 2027 [1]. The loan will be repaid only after Russia pays reparations once the conflict ends, eliminating immediate fiscal pressure on Kyiv [1]. The financing covers roughly two‑thirds of the IMF‑projected $160 billion shortfall for Ukraine’s 2026‑27 budget [1][4].

Belgium’s Legal Safeguards Prompt Shelving of Asset‑Backed Scheme Belgium, led by Bart De Wever, demanded binding guarantees before allowing any use of the €210 billion frozen Russian pool, arguing that oral promises were insufficient [1][4]. Because Belgium and other skeptics could not secure those guarantees, the EU postponed the proposal to tap the assets and instead opted for market borrowing [1][2]. Euroclear’s exposure to potential Russian retaliation and ongoing lawsuits heightened Belgium’s concerns, prompting late‑night negotiations to protect the country [2][4].

Member‑State Divide Persists Over Using Frozen Russian Funds Supporters such as Ursula von der Leyen, Antonio Costa, Donald Tusk and Friedrich Merz backed the loan, while Hungary’s Viktor Orbán, Slovakia, Bulgaria, Italy and Malta remained opposed or undecided [2][3][4]. Hungary’s veto power could block the alternative unanimity‑required borrowing plan, underscoring the split between a qualified‑majority route and a unanimous approach [3][4]. The debate centered on legal risks, the need for a solid legal basis, and the political message to Moscow [3][4].

Zelensky Hails Deal as Critical to Bridge IMF Funding Gap President Volodymyr Zelenskyy praised the agreement on X, calling it a “significant” step that strengthens Ukraine’s resilience and averts a projected €45‑50 billion deficit next year [1][3]. He emphasized that the loan, even without immediate asset use, provides a financial security guarantee for years to come [1]. The urgency expressed by Kyiv aligns with the EU’s aim to close the majority of the IMF‑identified funding gap before the spring [3].

Sources

Related Tickers

by TradingView

Timeline

2022 – The EU commits over €170 billion in military and economic aid to Ukraine since Russia’s invasion, establishing a financial partnership that underpins later loan discussions [6].

June 2025 – Euroclear holds roughly €194 billion of frozen Russian central‑bank assets in Belgium, with an additional €16 billion elsewhere, bringing the European total to about €210 billion, the pool from which the EU plans to draw funds [6].

Early December 2025 – Russia’s central bank sues Euroclear over the seizure of its assets, heightening legal risks and prompting Belgium to demand stronger EU guarantees before supporting any loan scheme [4].

3 Dec 2025 – The European Commission unveils a proposal to use €90 billion of the frozen Russian pool as collateral for a “reparations loan” that would cover two‑thirds of Ukraine’s 2026‑27 financing needs, while urging the bloc to consider borrowing on capital markets as an alternative [6].

9 Dec 2025 – EU leaders agree in principle to a two‑year funding package for Ukraine covering 2026‑27, earmarking two‑thirds of the estimated €90 billion requirement for EU financing and signalling that the frozen‑asset option remains under review, despite Belgium’s legal concerns [5].

17 Dec 2025 – At a Brussels summit, EU heads split over the asset‑backed loan; the plan requires a qualified‑majority representing 65 % of the EU population, while Hungary, Slovakia and others signal possible vetoes, and Belgian leader Bart De Wever demands binding guarantees before Belgium backs the scheme [3][4].

17 Dec 2025 – Hungarian Prime Minister Viktor Orbán labels the reparations‑loan proposal a “dead end,” underscoring Hungary’s likely veto and the difficulty of reaching the qualified‑majority needed for approval [4].

17 Dec 2025 – In a late‑night meeting, EU leaders negotiate a safeguard package for Belgium against possible Russian retaliation, with the United Kingdom, Canada and Norway offering to share any shortfall on a €90 billion loan backed by €193 billion of frozen assets held at Euroclear; President Zelenskyy calls the measure “absolutely just” and warns Ukraine faces bankruptcy without new money by spring [4].

18 Dec 2025 – President Volodymyr Zelenskyy urges the Brussels summit to approve a multi‑billion‑euro loan drawn from frozen Russian funds, warning that Kyiv could run a €45‑50 billion deficit next year and stressing that the money is needed for both the army and post‑war recovery; EU Commission President Ursula von der Leyen pledges a solution, while German Finance Minister Christian Merk (​Merz) urges a clear signal to Moscow that the war is pointless [1].

18 Dec 2025 – EU leaders adopt a $105 billion market‑borrowed loan for Ukraine, covering roughly two‑thirds of the projected funding gap through 2027; the controversial plan to tap frozen Russian assets is shelved after Belgium’s opposition, but the bloc retains the right to use the assets later, and Zelenskyy hails the deal as a “significant” step toward resilience [2].

2027 (planned) – The United Kingdom is scheduled to rejoin the Erasmus programme, illustrating broader EU‑wide cooperation even as the loan framework for Ukraine continues to evolve [1].

Post‑conflict (future) – Ukraine will begin repaying the EU loan only after Russia pays war reparations, at which point the EU will return the principal to Euroclear, preserving the Russian central bank’s claim rights and completing the asset‑backed financing cycle [2].

All related articles (6 articles)

External resources (7 links)