"With public finances across the EU already strained by high debt levels, the European Commission had proposed using frozen Russian central bank assets to secure a huge loan to Kyiv, with joint borrowing against the EU budget as a second option. Belgian prime minister Bart De Wever said EU leaders had avoided chaos and division with their decision to provide Ukraine with a loan through borrowing cash rather than using the frozen assets. We remained united, De Wever said after the late-night talks."
"German chancellor Friedrich Merz said Ukraine would have to repay the loan only if Russia paid reparations for its war, and that the EU reserved the right to use Russian assets immobilised in the EU for repayment if Russia fails to pay compensation. Merz had pushed hard for the frozen asset plan but still said the final decision on the loan sends a clear signal to Russian President Vladimir Putin."
"Ukraine's President Volodymyr Zelenskyy had told EU leaders at the start of the summit on Thursday that using Russian assets was the right way to go. Russian assets must be used to defend against Russian aggression and rebuild what was destroyed by Russian attacks. It's moral. It's fair. It's legal, Zelensky said."
European Union leaders approved a 90 billion euro interest-free loan to Ukraine for 2026–27 to meet military and economic needs. The funding will come from borrowing on capital markets secured against the EU budget rather than from frozen Russian central bank assets. The European Commission had proposed using frozen Russian assets, with joint EU borrowing as an alternative. Germany said Ukraine would repay only if Russia pays reparations and reserved the right to use immobilised Russian assets for repayment if Russia fails to compensate. The EU estimates Ukraine needs an extra 135 billion euros over two years.
Read at www.theguardian.com
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