Ukraine deal: EU leaders agree €90bn loan, but without use of frozen Russian assets

[muriel_volestrangler]

Source: The Guardian

EU leaders have pledged a €90bn loan for Ukraine to meet urgent financial needs, but failed to agree on the preferred option for many of securing that loan against Russia’s frozen assets in the bloc.

After talks ended in the early hours of Friday, the president of the European Council, António Costa, told reporters: “We committed and we delivered.” He said EU leaders had approved a decision to make a €90bn loan to Ukraine for the next two years backed by the EU budget, which Kyiv would repay only once Russia pays reparations.
...
The Ukrainian president, Volodymyr Zelenskyy, wrote on X that the deal “is significant support that truly strengthens our resilience”, adding: “It is important that Russian assets remain immobilised and that Ukraine has received a financial security guarantee for the coming years.”

EU leaders entered the summit on Thursday with many wanting to secure the urgently needed loan against some of Russia’s €210bn frozen assets on the continent. But the plan fell on the demand of Belgium, which hosts 88% of the Russian funds in the EU, to have unlimited budget guarantees from other member states if Moscow won a successful claim for damages.

Read more: https://www.theguardian.com/world/2025/dec/19/ukraine-deal-latest-europe-leaders-loan-zelenskyy

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Fairly weak stuff. The EU daren't use the Russian assets; indicating they think Trump wouldn't allow it, and that they can't oppose him on this. It's under half the value of the assets - the loan keeps Ukraine going, but seems unlikely to be enough to help Ukraine win, rather than just survive. And 3 EU countries - Hungary, Slovakia and the Czech Republic - just opted out of the loan altogether.

I suspect that they won't be able to make Russia pay reparations in the end (Trump will make sure they won't), so Ukraine won't have to repay this.

[Emrys]

1. The sentiments I've gathered so far from those I trust responding to this.

(my bold)

Michael Weiss
@michaeldweiss

Letting the most pro-Russian governments in the EU opt out of spending money to allow Ukraine to make its necessary budget requirements isn’t the ideal solution, but it is a solution. Ukraine doesn’t have to repay the €90bn until Russia coughs up reparations. And Russian assets remain frozen indefinitely. Don’t make the best the enemy of the good.

Jorge Liboreiro
@JorgeLiboreiro

The idea is for leaders to give the European Commission a new "mandate" to continue fine-tuning the reparations loan for Ukraine.

Hungary, it seems, has agreed not to veto the joint debt. But many questions remain.

Jorge Liboreiro
@JorgeLiboreiro

🚨 Bombshell at #EUCO at almost 2 am:

António Costa has proposed to use common borrowing to meet Ukraine's most immediate financial needs while work on the reparations loan continues in the coming months.

Messy mix-match solution. Leaders are still discussing

First Deputy Foreign Minister of Ukraine:

Sergiy Kyslytsya 🇺🇦
@SergiyKyslytsya

Indeed, there are moments when one should keep in mind that "Perfect is the enemy of good". It was a long night for European leaders but they were able to come up with a workable result. US$ 105 bln of support Ukraine needs to keep protecting Europe while defending itself

Putin might have hoped the situation would have provoked deeper splits among the European allies at this stage. He hasn't got them so far, and Ukraine gains some breathing space for the next year or so.

Meanwhile, across the Atlantic, splits between the Trump administration and its NSS and Congress and the just-signed NDAA are deepening, which won't please Putin and his wannabe transatlantic mafia. Congress passed a strongly bipartisan NDAA. It gave itself the powers to hold the administration to account. It needs to be determined to enforce them and pick fights where necessary.

It's already rankling at being made to feel redundant under Trump and Johnson's "leadership". What further splits can Trump and his junta risk opening up before the Republican House majority crumbles altogether and the Democrats take charge?

Michael Weiss
@michaeldweiss

The NDAA was signed into law this evening. I did a thread about it below. It mandates continued [support] for Ukraine and the Baltic states; Congressional oversight for any US troop withdrawals from Europe; and it places handcuffs on what Elbridge Colby can do at DoD.

Michael Weiss
@michaeldweiss

Suggest European friends and allies read not only the National Security Strategy but also the National Defense Authorization Act for FY 2026, which was published last night. It's very long, so skip to this section:



https://rules.house.gov/sites/evo-subsites/rules.house.gov/files/documents/rcp_xml-2.pdf

Michael Weiss
@michaeldweiss

Here, for instance, we see several amendments written in direct response to what Elbridge Colby has been doing at DoD while Pete Hegseth does chin-ups and tequila shots. Note the provision about reclassifying aid to Ukraine as needed U.S. stocks -- this cannot be done, per this draft, unless the kit is so badly needed for a contingency op, its absence could result in mission failure or loss of American lives:



Michael Weiss
@michaeldweiss

Let's say Trump wants to punish Zelensky again for not wanting to forfeit Donbas by cutting intel sharing to Ukraine. He would have two days to notify Congress on this decision. And he'd have to explain why he did it and what the anticipated consequences to Ukraine would be. "Because I'm an asshole and I don't care" might not even suffice in this fast-changing political environment!



Michael Weiss
@michaeldweiss

Here we see that every 90 days, Hegseth or his imminent successor must inform Congress not only of all committed/delivered U.S. military aid to Ukraine, but of all committed/delivered allied military aid to Ukraine, including stuff purchased via the PURL mechanism. Makes it harder for the admin to lie about what we've given, and what our newly designated enemies in Europe give and continue to give. Also note this provision, rather sneakily tucked in at the bottom: SACEUR and EUCOM commander Gen. Alexus Grynkewich, who recently obtained authorization to allow Western munitions to be used to strike inside Russian territory (this used to belong to Hegseth), can identify "any weapon system during the reporting period that meets Ukrainian requirements... but has not been delivered to Ukraine by the United States or an allied or partner country." A subtle way of saying Grynch can advocate for specific platforms Ukraine needs but hasn't got. And advocate implicitly not just for the U.S. to provide them, but for our allies to do so.



Michael Weiss
@michaeldweiss

More bad news for Colby and Vance cabal. The Baltic Security Initiative is codified by this legislation.



Michael Weiss
@michaeldweiss

Wanna permanently reduce the U.S. troop presence in Europe? Where you gonna get the money? Also, the Grynch stays in the picture.



Michael Weiss
@michaeldweiss

You can practically visualize the forehead vein on Sen. Dan Sullivan's head bulging here:

[Bayard]

2. No Loans!

Take it out of Putin's hide. He is never going to pay reparations, and he certainly will never make up for the dead Ukrainians.