Ukraine has welcomed the European Union’s decision to approve a €90 billion financial assistance package, calling it a vital step in ensuring economic stability and continued defence efforts as the war with Russia enters another critical phase. The announcement came after intensive discussions among EU leaders, even though no consensus was reached on using frozen Russian state assets to back the funding.
The loan package, expected to cover Ukraine’s needs for the next two years, is aimed at helping the country maintain essential government functions, support military operations, and stabilize its economy under the strain of prolonged conflict. Ukrainian officials have warned for months that without sustained international financial backing, Kyiv could face severe budget shortfalls that might weaken its ability to resist Russian advances.
Despite the positive response from Ukraine, the talks highlighted deep divisions within the EU over the controversial proposal to use billions of euros in frozen Russian central bank assets. While some member states supported the idea as a way to make Moscow pay for the damage caused by the war, others raised concerns about legal risks, financial stability, and potential repercussions for the eurozone. As a result, EU leaders opted to move forward with the loan without tying it directly to those assets.
Under the agreed framework, the EU will raise funds by borrowing from financial markets, with the loans guaranteed through the bloc’s common budget. European officials described this approach as a more secure and legally sound solution, ensuring rapid financial support for Ukraine while avoiding complex legal disputes.
Ukrainian President Volodymyr Zelensky welcomed the decision, describing it as a clear signal that Europe remains firmly committed to Ukraine’s sovereignty and long-term resilience. He emphasized that continued international backing is essential not only for military defence but also for protecting social services, pensions, and public sector salaries.
Although the failure to reach an agreement on Russian assets was seen as a missed opportunity by Kyiv, Ukrainian leaders remain hopeful that frozen funds could still be used in the future, particularly in discussions around war reparations. For now, the €90 billion package provides Ukraine with a critical financial lifeline as the conflict shows no signs of ending.
