Brussels just saw a nail-biting finish as European Union leaders sealed a crucial €90 billion ($105 billion) loan for Ukraine. This massive financial boost is set to keep Kyiv financially stable and firmly in the fight against Russia’s invasion for the next two years.
The deal is refreshingly simple: the EU will borrow money on financial markets, backed by its own budget, ensuring funds reach Ukraine swiftly. This isn’t just about money; it’s a powerful message to Moscow that Europe can act decisively on the geopolitical stage.
However, this victory comes with a twist. Many powerful EU figures, including German Chancellor Friedrich Merz and European Commission President Ursula von der Leyen, had pushed for a more ambitious “reparations loan.” Their plan? To use the vast sums of Russian assets frozen within the EU to fund Ukraine’s war effort.
Why the change of heart? Intense pressure and internal division. With U.S. aid wavering and Ukrainian President Zelenskiy warning of imminent fund shortages, a deal was critical. Yet, the reparations plan faced strong opposition, notably from Belgium, where the bulk of Russian assets are held. This opened the door for Hungary’s Prime Minister Viktor Orban, a Moscow-friendly leader, to play a pivotal role. Orban initially opposed any EU-funded loan but eventually agreed to the current plan, securing financial opt-outs for his country.
While some critics lament that the EU “blinked” by not using Russian assets directly, the reality is complex. The frozen assets remain in Europe, giving the bloc significant leverage in future peace talks. For now, Ukraine has its much-needed support, a testament to the EU’s ability to unite even under challenging circumstances.
