EU leaders rejected the European Commission’s and Germany’s proposal to use frozen Russian assets for Ukraine funding after nearly six hours of talks among the 27 members.
Diplomatic sources note Belgium’s pressure forced the Commission to overload the conclusions text with technical details, originally meant for political guidance before COREPER II negotiations.
The final conclusions mention ongoing discussions for a compensation loan based on cash balances from immobilized Russian assets. Sources told CNA this clause spares the Commission and Germany, long-time proponents of this viable option.
€90 billion loan without Russian funds
The conclusions state: “To secure necessary economic support for Ukraine from Q2 2026, including military needs, the European Council agrees to grant Ukraine a €90 billion loan for 2026-2027, based on EU borrowing from capital markets with EU budget support.”
Belgium opposed using frozen assets due to weak legal basis and disproportionate risk, as only Germany and Poland stood ready to guarantee losses if Russia claimed the funds.
The 27 approved joint borrowing unanimously, but Hungary, Slovakia, and Czechia opted out. Viktor Orban’s refusal to block opened the path.
German Chancellor Friedrich Merz, initially against joint borrowing, claimed post-summit: “The Ukraine package is finalized. As I requested, Ukraine gets a €90 billion interest-free loan covering military and budgetary needs for two years. This signals to Putin that his war won’t succeed.”
EU Commission President Ursula von der Leyen told journalists: “We secured a deal covering Ukraine’s needs for two years.” She hailed it as a major win and refused to rule out future asset use, noting “immobilized Russian assets remain so, and the EU retains rights to their cash for the €90 billion fund via joint debt.”
Diplomatic sources clarified to CNA the loan comes in two tranches, with no burden on national budgets. States cover interest via the current Multiannual Financial Framework (MFF) margin, raising questions on cuts to other EU funds.
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