The European Union has locked in its next big financial commitment to Ukraine, and it's taking the loan route rather than dipping into frozen Russian money. EU Council President Antonio Costa confirmed Friday that the bloc will allocate €90 billion ($105.41 billion) in aid to Ukraine for 2026 and 2027.
"We have a deal," Costa announced on social media platform X, as EU leaders wrapped up a two-day summit in Brussels.
Here's the setup: The EU has been wrestling with what to do about roughly €210 billion ($246 billion) in immobilized Russian central bank assets—money that's been frozen since Russia's full-scale invasion of Ukraine in February 2022, most of it sitting in Belgium. Ukraine's reconstruction needs are projected to hit $524 billion, so the temptation to tap that Russian cash has been real.
Moscow has made its position clear: touch those assets, and there will be consequences.
Borrowing Money Instead of Seizing It
In the end, EU leaders decided not to poke that particular bear just yet. Instead, they're going with joint borrowing backed by the EU budget, giving Kyiv a financial cushion as U.S. President Donald Trump pushes for a quick resolution to the war.
The structure is clever: "Ukraine will only repay this loan once Russia pays reparations," Costa explained. The EU is also keeping the door open to use those frozen Russian assets to repay the loan down the line if needed.
"The only way forward is a ceasefire and a negotiated peace," Costa said. "Our political and financial support to Ukraine will not falter: in war, in peace and in reconstruction. We are committed to building a free and prosperous Ukraine within the European Union."
Since the war began in 2022, the EU's total support to Kyiv has reportedly topped €187 billion.
Zelenskyy Welcomes the Package
Ukrainian President Volodymyr Zelenskyy expressed gratitude to EU leaders on Friday, calling the aid package "significant support that truly strengthens our resilience."
"It is important that Russian assets remain immobilized and that Ukraine has received a financial security guarantee for the coming years," Zelenskyy wrote on X. "Thank you for the result and for unity. Together, we are defending the future of our continent."
The announcement comes as U.S. and Russian representatives prepare for fresh talks on Ukraine in Miami this weekend. Trump has said the U.S. is "working very hard" to broker a peace deal.
