90 billion support for Ukraine: why the EU chose debt and not Russian assets
European leaders opted for joint financing in Kiev, overcoming divisions over the use of frozen Russian reserves
From our correspondent Beda Romano
BRUSSELS - After lengthy negotiations, overnight and otherwise, the Twenty-Seven have decided that financial support for Ukraine will come through a collection of money on the financial markets. The operation is particularly innovative because it will be based on enhanced cooperation between the member states. The idea of using Russian assets in Europe through a forced loan has been shelved for the time being. Too controversial, too risky.
The decision came in the night between Thursday and Friday during a 16-hour European summit in Brussels. "Today we approved the decision to provide 90 billion euros to Ukraine," explained European Council President António Costa at a late-night press conference. "As an urgent measure, we will provide a loan guaranteed by the EU budget." The loan is to be valid for the period 2026-2027.
The agreement with the 'rebel' countries
In the summit conclusions, the European Council specified that the money for Ukraine would be raised on the capital markets, using 'the room for manoeuvre offered by the EU budget'. In order to overcome the opposition of the Czech Republic, Hungary and Slovakia, and circumvent the need for unanimity, it was decided that the operation will take place under Article 20 of the Treaties, i.e. through enhanced cooperation. The three countries will not be affected financially.
Concretely, these three governments will not be required to pay interest to investors who buy European bonds. The EUR 90 billion will be paid to Ukraine in tranches. The financial aid is based on the belief that on Kiev's victory against Moscow ultimately depends the stability of the continent. Two days ago Ukrainian President Volodymyr Zelensky warned that the country will run out of money in early 2026.
Defeat for Germany
Politically, the decision of the Twenty-Seven is remarkable for several reasons. First of all, the decision to opt for pooled debt rather than Russian assets is a victory for Belgium, which had been sounding the alarm about this second solution for weeks for fear of provoking economic consequences and political retaliation from Moscow. Conversely, the decision reflects a clear defeat for Germany, which had recently been riding high as never before on the idea of using Russian assets.
