Ukraine has welcomed the European Union’s decision to provide €90 billion in support over the next two years, calling it a vital lifeline even as the bloc failed to reach agreement on using frozen Russian assets to finance the aid.
Ukraine welcomed the decision, with President Volodymyr Zelenskyy saying the package sent a clear message to Moscow.
He said the funding showed Russia there was “no point” in continuing the war because Kyiv would remain financially supported.
“The decision reached in Brussels overnight is a victory for Ukraine,” Zelenskyy said on Friday.
He noted that the country faces a $45 billion budget gap next year and said the EU funds would be used for social and humanitarian needs as well as to support defence efforts.
European officials have warned that without continued EU assistance, Ukraine could run out of money by the second quarter of next year, potentially weakening its ability to resist Russia and bringing the threat of Russian aggression closer to the bloc.
“This is significant support that truly strengthens our resilience,” Zelenskyy wrote earlier on Telegram.
Russian President Vladimir Putin said the European Union had abandoned plans to use frozen Russian state assets to support Ukraine because doing so would have carried serious consequences.
His comments came after EU leaders agreed to provide Ukraine with a €90 billion loan over the next two years, opting to raise the money through borrowing rather than by backing the loan with immobilised Russian assets.
The original proposal had proved politically and legally difficult to resolve.
Speaking at his annual end-of-year press conference, Putin described the initial plan to use Russia’s frozen assets as “daylight robbery”.
“Why can’t this robbery be carried out? Because the consequences could be grave for the robbers,” he said.
Putin warned that using the assets would undermine trust in the euro zone and discourage countries from holding their reserves there, particularly oil-producing states that store foreign currency and gold in Europe.
A major obstacle to the reparations-loan proposal was the concern of Belgium, where around €185 billion of the frozen Russian assets in Europe are held.
Belgian officials sought firm guarantees against financial and legal risks, including potential Russian retaliation.
German Chancellor Friedrich Merz, who strongly backed the asset-based loan, said the final outcome still met Ukraine’s needs.
“This is good news for Ukraine and bad news for Russia — and that was our intention,” he said.
Ukraine’s deputy foreign minister, Sergiy Kyslytsya, acknowledged the difficulty of the talks, saying: “There are moments when one should remember that ‘perfect is the enemy of good’.”
Economists also welcomed the agreement. Carsten Brzeski, global head of macro research at ING think tank, said failure to reach a deal would have been damaging.
“If Europe hadn’t found a solution, it would have been a symbolic disaster,” he said, adding that there should be sufficient investor appetite for the new loan.
Separately, EU leaders also discussed other priorities at the summit, with Chancellor Merz and European
Commission President Ursula von der Leyen expressing confidence that the bloc could still sign a contentious free trade agreement with the Mercosur group of South American countries in January, despite divisions among member states.
Donald Trump said he is “in no hurry” to reach a deal with Iran, insisting the U.S. is slowly getting what it wants. He warned military action rem...
Malta’s Prime Minister Robert Abela has secured a fourth successive election victory for his Labour Party, extending its hold on power, though with ...
Nicaraguan indigenous leader and former lawmaker Brooklyn Rivera has died in state custody at the age of 73, according to local media reports citing h...
At least 46 people, including six children, have been killed in a powerful explosion at a building used to store mining explosives in northeastern Mya...
Thousands of residents blocked Austria’s Brenner motorway on Saturday (30 May), shutting down a major north-south transport route through the Alps i...
Donald Trump said he is “in no hurry” to reach a deal with Iran, insisting the U.S. is slowly getting what it wants. He warned military action remains an option if talks fail. Meanwhile, U.S. forces said they fired a missile at a vessel trying to breach Washington’s blockade of Iran.
Nicaraguan indigenous leader and former lawmaker Brooklyn Rivera has died in state custody at the age of 73, according to local media reports citing his family.
At least 46 people, including six children, have been killed in a powerful explosion at a building used to store mining explosives in northeastern Myanmar, according to local media reports.
Thousands of residents blocked Austria’s Brenner motorway on Saturday (30 May), shutting down a major north-south transport route through the Alps in protest against persistent congestion from heavy truck traffic and tourism.
U.S. rapper Kanye West, now known as Ye, performed to a crowd of 118,000 people in Istanbul on Saturday night, marking his first concert in Europe in more than a decade, despite being barred from performing in several countries over past antisemitic remarks.
Iranian-made Yassin missiles were spotted mounted on Armenian Air Force fighter aircraft during Armenia's latest military parade on Thursday (28 May), drawing attention from defence observers and regional analysts.
The Philippines remains under a "severe threat" from China despite recent efforts by Washington and Beijing to ease tensions, Philippine Defence Secretary Gilberto Teodoro said on Saturday (30 May).
Thai rescuers say five people have been pulled alive from a flooded cave in remote Laos, where seven villagers became trapped after heavy rain cut off access underground.
Russia has recalled its ambassador to Armenia for consultations, citing Yerevan's growing rapprochement with the European Union. The move is seen as the latest sign of deteriorating relations between the longtime allies ahead of Armenia's parliamentary election on 7 June.
Malta’s Prime Minister Robert Abela has secured a fourth successive election victory for his Labour Party, extending its hold on power, though with a reduced majority compared with previous polls.
Nicaraguan indigenous leader and former lawmaker Brooklyn Rivera has died in state custody at the age of 73, according to local media reports citing his family.
At least 46 people, including six children, have been killed in a powerful explosion at a building used to store mining explosives in northeastern Myanmar, according to local media reports.
South Africa's preparations for the 2026 FIFA World Cup have suffered an unexpected setback after the national team failed to depart for Mexico as scheduled on Sunday (31 May) because some players and officials had not yet received their visas.
Five people have died after a mine shaft collapsed during an illegal mining operation in southwestern China, state media reported on Sunday (31 May), just days after the country's deadliest mining disaster in more than a decade claimed at least 82 lives.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment