EU leaders approve 90 billion euro financial package for Ukraine

European leaders approved a 90 billion euro financial package for Ukraine for 2026-27. The interest-free loan aims to fund Ukraine's military and economic needs and is intended as a clear signal to Russia, with plans to keep its assets frozen.

European leaders have agreed to provide Ukraine with 90 billion euros in financial support for 2026-27, a decision aimed at funding Ukraine's military and economic needs.

"We have a deal. Decision to provide 90 billion euros of support to Ukraine for 2026-27 approved. We committed, we delivered," Antonio Costa, President of the European Council, wrote on X, announcing the agreement. The financial package includes an interest-free loan of EUR90 billion, a measure intended to send a clear signal to Russia.

"This sends a clear signal from Europe to Putin: This war will not be worth it. We will keep Russian assets frozen until Russia has compensated Ukraine," said Olaf Scholz, former German Chancellor, who suggested the interest-free loan. European Commission President Ursula von der Leyen said the package was the result of focused discussions among EU leaders. "We gathered today with a clear objective: to address Ukraine's pressing financing needs. We delivered. Ninety billion euros for the next two years through EU borrowing on the capital markets," she said.

Zelenskyy's Appeal in Brussels

The announcement followed a meeting on Thursday between President Volodymyr Zelensky of Ukraine and European leaders in Brussels, where he made a last-minute appeal for the EU to tap frozen Russian assets to fund Ukraine's war effort and sustain the country economically, The New York Times reported. "The decision is now on your table," Zelensky said, calling the package "one of the clearest and most morally justified decisions that could ever be made." He stressed that, without the funds, Ukraine would have to significantly reduce its drone production and could face difficulties obtaining missiles for Patriot defence systems.

Overcoming Belgian Opposition

Belgium had opposed the plan for months, citing potential legal risks if Russia retaliates, prompting Zelenskyy to engage directly with Belgian Prime Minister Bart De Wever to make his case. https://x.com/ZelenskyyUa/status/2001661838744809820 Sharing a post on X, after meeting Bart De Wever, he wrote, "Together with Prime Minister of Belgium @Bart_DeWever, we discussed mechanisms for using frozen Russian assets. I understand all of Belgium's concerns; however, a decision on the reparations loan must be made. It is fair and will ensure long-term predictability for Ukraine."

"We also discussed coordination in diplomacy between Europe and the United States for the sake of peace, Ukraine's future membership in the European Union, support for Ukraine's energy system, and reconstruction. I thank Belgium and the entire Belgian people for supporting Ukraine from the very beginning of the full-scale war. I am also grateful for Belgium's contribution to the PURL initiative," the post added.

Putin Lambasts European Leadership

On Wednesday, as European leaders were preparing to meet, Russian President Vladimir Putin criticised European leaders as "subordinate little pigs" following the lead of the Biden administration, which he said had believed that "Russia could be swiftly broken up and dismantled," according to The New York Times. Putin added that President Trump had changed American policy toward Moscow, allowing for what he called "nascent progress." But he said that a similar shift in relations with Europe was unlikely unless its current leaders were replaced. The remarks came a day before Putin was scheduled to hold his annual year-end news conference on Friday.

Ukraine's Broader Pleas for Aid and Settlement

In Brussels, Zelenskyy acknowledged that not all European leaders supported a program set up by the United States and NATO for Ukrainian allies to buy American weapons after the Trump administration halted aid, as per The New York Times. "How else are we supposed to get through this winter?" Zelenskyy asked. "We need missiles for Patriot systems."

In talks with the United States on a potential settlement, Zelensky said there was still no agreement on the postwar use of the Zaporizhzhya nuclear power plant now under Russian occupation or on a Russian request that Ukraine withdraw from territory Kyiv controls in the Donbas region. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)