The European Union has approved a landmark $105 billion loan package to support Ukraine over the next two years, marking one of the bloc’s most significant financial commitments since Russia launched its full‑scale invasion in 2022.
EU Council President Antonio Costa confirmed the agreement after months of negotiations among member states, some of which had pushed to tap frozen Russian assets rather than raise funds on capital markets. In the end, leaders opted for an interest‑free loan, designed to stabilize Ukraine’s economy and sustain its military operations through 2027.
The package—equivalent to €90 billion—aims to provide predictable, long‑term financing as Kyiv continues to defend territory along a front line that has remained volatile heading into 2026. European officials framed the deal as a strategic investment in continental security, underscoring the EU’s role as Ukraine’s largest financial backer.
Ukrainian President Volodymyr Zelensky welcomed the decision, calling it a critical step toward ensuring the country’s resilience amid ongoing Russian attacks. The funds are expected to cover essential government functions, reconstruction needs, and defense‑related expenditures.
While the agreement represents a major show of unity, debates over how to handle frozen Russian assets are set to continue into 2026, leaving open questions about future funding mechanisms.
