After months of disputes, EU member states reached a compromise on financing Ukraine. German Chancellor Friedrich Merz announced after the EU summit in Brussels that the country under Russian attack will receive an interest-free loan of €90 billion from the European Union. If Russia fails to provide compensation for war damages, frozen Russian assets in the EU should be used to cover them.
Merz described the solution as a “great success,” even though it did not match his original proposal. He had wanted to directly use Russian central bank funds, mainly held in Belgium, to secure loans of up to €210 billion. That plan ultimately failed due to opposition from countries such as France and Italy, with Belgium in particular warning of legal and political risks.
Following about 18 hours of talks at the Europa building in Brussels, Merz expressed satisfaction: “Europe has recognized the right moment and demonstrated its sovereignty.” He added: “We stand firmly against the greatest security threat facing Europe – Russia’s aggression, which has long gone beyond a mere war of aggression against Ukraine.”
According to Merz, the €90 billion package will be sufficient to cover Ukraine’s military needs and budget requirements for the next two years, with the first payments possibly starting in January.
Sources - Agencies
