EU agrees €90bn loan to Ukraine amid impasse on using Russian assets

BBC
BBC
1d ago
5 views
The EU approved a €90bn loan to Ukraine but avoided using frozen Russian assets due to liability disputes, underscoring unity amid conflict and ongoing diplomacy.
EU agrees €90bn loan to Ukraine amid impasse on using Russian assets
A What happened
After extensive discussions at the Brussels summit, EU leaders finalized a €90bn loan package to support Ukraine’s military and economic needs for the next two years. The proposal to use €200bn of frozen Russian assets stalled over sharing liability concerns, notably raised by Belgium. The loan, backed by the EU’s collective budget, illustrates member states’ commitment to Ukraine despite divisions on asset usage. Ukrainian President Zelensky thanked the EU for its support but stressed that Russian funds must remain frozen. French President Macron indicated Europe should explore avenues to restart dialogue with Russian President Putin. These developments come as US and Russian officials prepare for further peace negotiations in Miami. The EU's financial backing comes amid warnings Ukraine faces a cash crunch by spring and risks reducing drone production without emergency funding.
★

Key insights

  • 1

    EU’s compromise reveals member state risk tolerance limits: Belgium’s refusal to share liability for Russian asset use highlights divergent risk appetites among EU countries, complicating unified financial strategies during conflict.

  • 2

    Loan reflects EU strategic unity under external pressure: Despite disagreements, the decision to provide a €90bn loan demonstrates EU cohesion aimed at maintaining support for Ukraine and deterring Russian aggression.

  • 3

    Diplomatic balance between financial aid and future engagement: Macron’s call to re-engage Russia amid financial backing of Ukraine indicates evolving EU strategy balancing deterrence with potential negotiation pathways.

Takeaways

The EU’s €90bn loan deal provides essential support to Ukraine while revealing internal limits on resource usage. The evolving political dialogue suggests cautious navigation between financial aid and diplomatic engagement with Russia.

Topics

Business & Markets Economy World & Politics Policy & Regulation International Affairs Diplomacy Governance

Read the full article on BBC