In brief
Following extensive negotiations, EU leaders have agreed on a €90 billion loan for Ukraine to assist with military and economic challenges over the next two years. The decision comes amidst calls for utilizing frozen Russian assets, a move that ultimately did not find consensus. The financial aid is crucial for Ukraine, which faces a cash drain starting this spring. Meanwhile, diplomatic discussions continue regarding peace efforts in the ongoing conflict.
European Union leaders have struck a deal to give Ukraine a €90bn (£79bn; $105bn) loan after failing to agree on using frozen Russian assets.
The agreement, which leaders said would meet Ukraine's military and economic needs for the next two years, came after more than a day of talks at a summit in Brussels.
We committed, we delivered, EU chief Antonio Costa wrote on X as he announced the deal to provide a loan backed by the bloc's common budget.
Ukrainian President Volodymyr Zelensky had urged leaders to use €200 billion of frozen Russian assets but Belgium, where the vast bulk of the cash is held, demanded guarantees on sharing liability that proved too much for other countries.
In another development, French President Emmanuel Macron commented on the need for re-engagement with Russian President Vladimir Putin, suggesting that it would be beneficial for Europe to find a framework for discussion.
Despite the challenge of using frozen assets, EU leaders managed to maintain unity by agreeing to provide Ukraine with a loan rather than causing potential discord among member states.
Zelensky indicated that without this financial boost by spring, Ukraine would face severe cuts in production, especially in military sectors like drone manufacturing. The EU estimates that Ukraine needs an additional €135 billion to sustain operations over the next two years, with financial pressures intensifying starting in April.
In the backdrop of this decision, other political discussions are ongoing, including U.S.-Russia talks regarding peace strategies in the conflict, emphasizing the urgency of financial support for Ukraine.
