Ukraine deal: EU leaders agree €90bn loan, but without use of frozen Russian assets

Friday, December 19, 2025 -EU leaders have approved a massive €90 billion loan package to support Ukraine, signaling strong financial backing amid the ongoing conflict. 

However, the agreement notably excludes the use of frozen Russian assets, a decision that underscores divisions within the bloc over legal and diplomatic constraints. The funding aims to sustain Ukraine’s defense, humanitarian efforts, and economic stability in the face of prolonged challenges.

The package will provide both grants and loans, enabling Kyiv to maintain essential services and continue rebuilding infrastructure damaged by the war. 

European officials emphasized that while the frozen Russian assets remain a contentious issue, the immediate priority is to ensure Ukraine has the resources needed to withstand military and economic pressures. Analysts note that this approach balances urgency with caution, avoiding potential international legal disputes.

Despite the agreement, some EU members expressed frustration that the frozen Russian funds were not tapped, arguing they could provide a significant supplemental boost. 

Still, the €90 billion package reflects a unified commitment to Ukraine’s resilience and signals to global markets that Europe is willing to make substantial financial commitments even amid internal disagreements.