Brussels/Kyiv — European Union leaders have agreed to provide Ukraine with a €90bn (£79bn; $105bn) loan package, a critical lifeline for Kyiv as it battles to keep its economy afloat during the ongoing war. The deal comes after weeks of tense negotiations, with member states unable to reach consensus on tapping into €210bn worth of frozen Russian assets.
Belgium, which holds the bulk of Moscow’s immobilized funds, has been particularly resistant. Brussels insists that any move to unlock the cash must come with ironclad legal guarantees, fearing that the Kremlin could retaliate with lawsuits in international courts.
The loan, while substantial, falls short of Ukraine’s projected needs. Economists estimate Kyiv requires around €135bn over the next two years to stabilize its finances, meaning the EU package covers roughly two-thirds of that sum. Ukrainian officials welcomed the deal but stressed that further support will be essential to sustain government services and military operations.
Meanwhile, in Moscow, President Vladimir Putin used his marathon end-of-year press conference to accuse the West of deliberately casting Russia as an adversary. Speaking to the BBC’s Russia editor Steve Rosenberg, Putin claimed Western governments were “making Russia the enemy” in order to justify their policies of sanctions and military aid to Ukraine.
The juxtaposition of Brussels’ financial maneuvering and Putin’s defiant rhetoric underscores the widening gulf between Europe and Russia. For EU leaders, the loan represents both a show of solidarity with Ukraine and a pragmatic compromise in the face of legal and political obstacles. For Moscow, it is further evidence of what the Kremlin portrays as Western hostility.
As the war grinds on into another winter, the EU’s decision signals a determination to keep Ukraine solvent — even if the question of Russia’s frozen billions remains unresolved.
