EU approves massive loan for Ukraine, shelves Russian asset grab

Talks stretched late into the night in Brussels, where leaders ultimately set aside the idea of a so-called “reparations loan” backed directly by Russian assets after failing to reassure Belgium that it would be protected from possible Russian retaliation.

"Today we approved a decision to provide €90 billion to Ukraine. As a matter of urgency, we will provide a loan backed by the European Union budget," Costa told a news conference after hours of talks among the leaders in Brussels.

The funds would be raised by the EU on capital markets and guaranteed under the 27-nation bloc’s seven-year budget framework. 

French President Emmanuel Macron called the agreement a major breakthrough and “the most realistic and practical way” to finance continued support for Ukraine.

German Chancellor Friedrich Merz echoed that assessment, saying the deal ensures Ukraine receives a zero-interest loan large enough to meet its military and budgetary needs for the next two years.

The EU leaders said Russian assets, totalling €210 billion ($250 billion) in the EU, will remain frozen until Moscow pays war reparations to Ukraine. If Moscow ever takes such a step, Kyiv could then use the money to pay back the loan.