In brief
European Union leaders finalized a €90bn (approximately $105bn) financial package for Ukraine to assist with its military and economic needs over the next two years. This decision, made during a summit in Brussels, came after extensive negotiations that could not reach an agreement on using frozen Russian assets. The EU aims to maintain unity while addressing Ukraine's urgent financial requirements, with President Zelensky stressing the necessity for continued support as the nation faces a cash crunch ahead.
European Union leaders have struck a deal to give Ukraine a €90bn (£79bn; $105bn) loan after failing to agree on using frozen Russian assets.
The agreement, which leaders said would meet Ukraine's military and economic needs for the next two years, came after more than a day of talks at a summit in Brussels.
We committed, we delivered, EU chief Antonio Costa wrote on X as he announced the deal to provide a loan backed by the bloc's common budget.
Ukrainian President Volodymyr Zelensky had urged leaders to use €200 billion of frozen Russian assets but Belgium, where the vast bulk of the cash is held, demanded guarantees on sharing liability that proved too much for other countries.
In another development, French President Emmanuel Macron said he believed it would be useful for Europe to re-engage with Russian President Vladimir Putin.
EU leaders avoided chaos and division with their decision to provide Ukraine with a loan through borrowing cash rather than using frozen Russian assets, Belgian Prime Minister Bart De Wever said early on Friday.
Ukraine is months from running out of cash and Zelensky said without an injection by spring Ukraine would have to reduce production of drones.
The EU estimates Ukraine needs an extra €135 billion to stay afloat over the next two years, with the cash crunch set to start in April.
The agreement offers Kyiv a desperately needed lifeline amid a flurry of diplomacy as US President Donald Trump pushes for a quick deal to end Russia's war.
Meanwhile, Zelensky announced Ukrainian and US delegations would hold new talks to seek more guarantees from Washington.
