Europe will lend $105 billion in additional aid to Ukraine to fund its money-starved budget for two years.
European leaders will obtain the money with a loan backed by the European Union’s budget. The plan approved Friday is some leaders’ second choice, after a push to use Russia’s frozen assets to fund the Ukrainian budget. Belgium, where most of the frozen assets are located, did not consent to the first-choice plan.
The country rejected the plan even as Ursula von der Leyen, the EU chief, and Friedrich Merz, the German chancellor, pushed to use the frozen billions in Russian assets. In the end, Ukraine will get its money at a much higher cost to the EU.
TRUMP SLOWS BLEEDING OF INDEPENDENT VOTERS: WHITE HOUSE REPORT CARD
“This will address the urgent financial needs of Ukraine,” Antonio Costa, the president of the European Council, said at a news conference in Brussels. He noted the EU would reserve its right to use the frozen Russian assets if needed.
Ukrainian leader Volodymyr Zelensky, the leader of a war-torn country entering its sixth year of all-out war against Russia, expressed his gratitude.
“I am grateful to all leaders of the European Union for the European Council’s decision on €90 billion in financial support for Ukraine in 2026–2027,” Zelensky wrote on X.
“This is 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. Thank you for the result and for unity. Together, we are defending the future of our continent,” he added.
Ukraine had been expected to run out of money in early 2026. Though the plan to use 210 billion euros in Russian assets failed, the money is surely needed for Ukraine to fight an advancing Russia. The country needs cash to buy weapons and produce drones. Zelensky had warned on Thursday that the country’s drone production and deep-strike capability would be diminished without the funds.
The United States and European countries hope to liberate Ukraine and create peace in the region, but Russian leader Vladimir Putin has proved immovable during attempts for a peace deal.
DEMOCRATS NEED TO TEMPER THEIR EXPECTATIONS OF A 2026 BLUE WAVE
“Our troops are advancing all across the line of contact, faster in some areas or slower in some others, but the enemy is retreating in all sectors,” Putin said during an annual news conference.
Russia has resisted peace talks for years, and most favored peace plans by the nation involve Ukraine ceding land. Zelensky has indicated that he is unwilling to hand over land to Russia. Putin also said he’s willing to take land by force, even though he says he’d rather “address the root causes of the conflict through diplomatic means.”
“The goals of the special military operation will undoubtedly be achieved. We would prefer to accomplish this and address the root causes of the conflict through diplomatic means,” he said in a Kremlin release earlier this week.
“However, if the opposing side and its foreign patrons refuse to engage in substantive dialogue, Russia will achieve the liberation of its historical lands by military means,” Putin added.
President Donald Trump is hopeful that a peace deal will be done. He said this week that peace between the two countries is “closer now than we have been.”
But while Putin has engaged with the U.S., he said recently that he’s unlikely to engage with European leadership in its current form. “I hope the same [engagement] will happen with Europe,” Putin added.
THE EU BUREAUCRACY IS DECLARING WAR ON AMERICAN BUSINESS
“It is unlikely that this is possible with the current political elites, but in any case, it will be inevitable as we continue to strengthen. If not with the current politicians, then when the current elites in Europe change,” he said.
Without input from Ukraine’s allies, it’s likely tougher for a peace deal to be done in the future.
