In a breakthrough after late-night negotiations in Brussels, EU leaders have finalized a massive financial support package for Ukraine. While the direct use of frozen Russian assets has been sidelined for now, leaders confirmed that the door remains open for that strategy in the future.
“Today, we approved a decision to provide €90 billion ($106 billion) to Ukraine for the next two years. As a matter of urgency, we will provide the loan backed by the European Union budget,” said European Council President António Costa. “We kept our promise.”
The funding structure involves 24 out of 27 EU member states — with the Czech Republic, Hungary, and Slovakia opting out. These nations will take on common debt through the European Commission, backed by the EU budget. This capital will be extended to Ukraine as a loan over the next two years.
The repayment terms are unique: Ukraine is expected to repay the loan only if Russia pays reparations. If that does not occur, the option of still accessing the frozen Russian assets comes into play again. However, a notable concern raised by diplomats is the accumulation of loan interest for the EU, as it is currently unclear who will pay.
Chancellor Friedrich Merz hailed the agreement as “good news for Ukraine,” though the final deal only incorporated portions of his initial proposal. In a written statement, Merz noted: “The financial package for Ukraine is in place. As I requested, Ukraine will receive an interest-free loan of €90 billion. These funds are sufficient to cover military and budget needs for the next two years. This signal is crucial to ending the war, because Putin will only give in when he realizes that his war is not worth it.”
Merz emphasized that “Ukraine only has to repay the EU loan once it has received compensation from Russia.” He further stated: “We expressly reserve the right: If Russia does not pay compensation, we will – in full accordance with international law – use Russian assets for the repayment.”
Meanwhile, French President Emmanuel Macron stated: “After long discussions, we decided on a loan to Ukraine in the amount of €90 billion for the next two years, based on a European Union footprint that will be guaranteed by the European budget. These eurobonds for Ukraine are a major advance that gives visibility to our Ukrainian friends and coherence to our support. This solution has appeared to be the most realistic and practical to ensure that Ukraine has the resources it needs to finance its war effort by 2026.”
The direct use of Russian assets was avoided for now because it “proved to be too complicated” during the six-hour summit. Merz confirmed the funds should be available by mid-January and reassured the public that taking on EU-level debt “does not put a strain on Germany’s budget.”
Regarding the United States, Merz expressed hope that the Trump administration would maintain diplomatic heat on Moscow. His final takeaway from the Brussels negotiations was: “Good news for Ukraine, pretty bad news for Russia.”
Meanwhile, criticism poured in from many corners over the tens of billions in loans for Ukraine.
“The EU is taking on €90 billion in debt to support Ukraine. Chancellor Merz is transferring his irresponsible debt policy to the EU. In the end, the German taxpayer will have to foot the bill again,” said AfD’s Alice Weidel on X.
Hungarian Prime Minister Viktor Orbán also criticized the package but celebrated the fact that frozen Russian assets would not be used to finance Ukraine, which he said would have amounted to a declaration of war.
“We managed to avert the immediate risk of war. We did not allow Europe to issue a declaration of war on Russia by using Russian assets. This plan would have dragged Europe into war and imposed a financial burden of 1000 billion HUF on Hungary,” Orbán wrote.
We have endured a long and challenging night.
We managed to avert the immediate risk of war. We did not allow Europe to issue a declaration of war on Russia by using Russian assets.
This plan would have dragged Europe into war and imposed a financial burden of 1000 billion HUF… pic.twitter.com/Jbs1KI6XvA
— Orbán Viktor (@PM_ViktorOrban) December 19, 2025
“We succeeded in protecting Hungarian families from this. At the same time, 24 member states decided to grant a war loan to Ukraine for the next two years. If Ukraine is unable to repay the loan, those European countries will have to cover the repayment. Thankfully, the V3 cooperation is active once again: Hungary, Slovakia, and the Czech Republic have decided not to get on that train,” he continued.
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