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EU Approves €90 Billion Interest-Free Loan for Ukraine as Frozen-Assets Plan Stalls

The stopgap leaves the asset-seizure plan unresolved, exposing divisions that raise doubts about longer-term funding.

Overview

  • Leaders signed off on a two-year, €90 billion package of joint-borrowed, no-interest loans intended to keep Ukraine fiscally solvent in 2026–27.
  • A proposal to use roughly €210 billion in frozen Russian central bank assets failed to win consensus after legal and financial objections led by Belgium and Italy.
  • The loan is structured for repayment from future Russian reparations or proceeds from frozen assets, with officials saying the link to immobilized funds remains in place.
  • Hungary, Slovakia and the Czech Republic opted out of the joint borrowing, underscoring limits to collective financing as future packages are debated.
  • Analysts warn the package may only cover about a year of Ukraine’s needs and cite IMF projections of a two‑year shortfall near $160 billion, while reactions ranged from praise by Belgium’s prime minister to criticism from French MEP Thierry Mariani.