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EU Approves €90 Billion Loan for Ukraine, Leaves Frozen-Assets Plan Unresolved

Belgium’s legal and financial concerns over tapping Russian sovereign assets stalled consensus at the Brussels summit.

Overview

  • The two-year, interest-free package for 2026–27 will be raised through EU borrowing backed by budget headroom, according to officials.
  • Leaders said the separate reparations-loan concept tied to roughly €210 billion in frozen Russian central bank assets requires further technical and legal work.
  • Belgium, home to Euroclear holding about €185–€193 billion of the assets, sought uncapped guarantees against lawsuits and retaliation before supporting any asset-based scheme.
  • Russia’s central bank has launched legal action, including a claim seeking about $230 billion in damages from Euroclear over the blocking and potential use of its funds.
  • The EU estimates Ukraine needs roughly €135 billion over 2026–27 with a cash crunch projected in spring 2026, increasing pressure to secure immediate financing.