Europe pours billions into Ukraine backing despite divisions in Brussels

(Horizon Weekly) – European Union leaders have sealed a major financial support package for Ukraine, agreeing in Brussels to provide roughly €90 billion in joint loans over the next two years to help Kyiv sustain its defence and economy amid Russia’s continued war.

The financing deal, reached after intense summit negotiations, marks a critical step in keeping Ukraine afloat as it faces severe budget shortfalls early next year. Instead of tapping into more than €200 billion in frozen Russian assets, EU leaders opted to raise the funds on capital markets backed by the EU budget, sidestepping deep legal and political disagreements over directly using the immobilised assets.

Belgium played a central role in blocking proposals to monetise Russian assets, citing legal risks and fears of retaliation. This stance forced a compromise that preserved EU unity but limited the scope of the support mechanism, frustrating several member states that had pushed for a tougher approach toward Moscow.

Ukrainian President Volodymyr Zelenskyy welcomed the decision, calling it vital for his country’s defence and financial stability, even as some EU governments expressed reservations about the structure of the deal.

While the agreement fell short of what many had hoped for, particularly efforts to convert frozen Russian funds into direct compensation for Ukraine, it nonetheless sends a strong political signal of continued European commitment to Ukraine’s resilience and security.

EU officials indicated that discussions may continue on alternative ways to link frozen Russian assets to future reparations, even as the current financing plan moves forward.

Photo: The Associated Press