With new debts

EU puts together 90 billion package for Ukraine

EU Council President António Costa presented the 27 heads of state and government with a draft for the summit declaration. There is a buffer of billions in the annual EU budget.(Bild: EPA/OLIVIER HOSLET)

The EU heads of state and government have agreed on financing for Ukraine for 2026 and 2027. A total of 90 billion euros is to be made available, financed through joint borrowing, announced EU Council President António Costa. Russian funds remain frozen.

Federal Chancellor Christian Stocker (ÖVP) welcomed the decision. He emphasized that the measure was "gratifying" and meant "no direct burden for the Austrian taxpayer" from the budget. The financing was secured via the EU budget and would be phased in over two years.

Moreover, the loan is not to be drawn down immediately for 90 billion, but gradually over two years. The amount chosen corresponds to "needs".

EU Council President António Costa presented the 27 heads of state and government with a draft for the summit declaration. There is a buffer of billions in the annual EU budget.(Bild: EPA/OLIVIER HOSLET)

Chancellor Stocker is pleased with the solution.(Bild: AFP/NICOLAS TUCAT)

German Chancellor Merz believes his proposal has been implemented.(Bild: AFP/JOHN THYS)

"Clear signal to Putin"
 German Chancellor Friedrich Merz declared: "As I proposed, Ukraine will receive an interest-free loan of 90 billion euros. This sends a clear signal from Europe to Putin: this war will not be worth it. We will freeze Russian assets until Russia has compensated Ukraine."

For Kirill Dmitriev, Putin's special envoy for investment and cooperation, the signal is apparently not clear. Russia welcomes the compromise reached by the EU on the financing of Ukraine, as "law and reason" have prevailed, he explained on X. "The voices of reason in the EU have prevented the illegal use of Russian reserves to finance Ukraine," wrote Dmitriev. This was a "serious blow to the EU warmongers".

Decision on Russian assets further postponed
The approximately 210 billion euros in Russian state assets remain frozen and are to be used for repayment in the future. According to EU diplomats, details on the use of these funds are still to be worked out. The original financing model failed because Paris and Rome, among others, were not prepared to provide the necessary funds for the protection mechanism demanded by Belgium's head of government Bart De Wever. He wanted a guarantee that all risks that could arise from the use of the Russian funds would be fully covered jointly.

Among other things, the Belgian government saw the risk of Russia retaliating against European private individuals and companies, for example by expropriating assets in Russia. Above all, it also feared for the existence of the financial institution Euroclear, which manages the majority of Russian assets frozen in the EU.

A split would have been a disaster.

Belgiens Regierungschef Bart De Wever

Bild: EPA/OLIVIER HOSLET

However, De Wever was satisfied after the summit. "Ukraine has won, Europe has won, financial stability has won," he said. "If we had left Brussels divided today, Europe would have lost its geopolitical significance. That would have been a total disaster." French President Emmanuel Macron considered the solution that has now been found to be "the most realistic and practicable".

Skeptics also agreed
Joint borrowing via the EU budget was long considered very unlikely because it requires a unanimous decision by the 27 EU states. The Russia-friendly government in Hungary had ruled this out. However, Hungary then agreed to the agreement, as did Slovakia and the Czech Republic, which are also critical of aid to Ukraine. According to the decision, all three countries are exempt from any loan repayments.

X-Contribution: EU Council President António Costa is delighted with the agreement:

The solution ensures that the frozen Russian assets will remain frozen and could also be used to repay this loan, Stocker said. "It is a very good solution that has been found here," said the Federal Chancellor. "We have promised that we will deliver and the European Union has shown that it is capable of making decisions and can also deliver."

X-Contribution: Ukraine President Selensky had met with Belgium's prime minister to discuss the frozen Russian funds:

The frozen Russian state assets in the EU of around 210 billion euros would remain immobilized for so long, both Merz and Costa emphasized. Therefore, the EU states would ultimately not have to pay for the loan. The order of financing had thus been reversed, said Merz. The direct use of Russian state assets had proved to be too complicated during the six hours of consultations in Brussels.

Loan covered by EU budget
The utilization of the loan of 90 billion euros is covered by the European Union budget, Stocker emphasized: "That means not by the Austrian budget or by the budget of a member state, but by the European budget."