The European Union has agreed to provide Ukraine with a $105 billion interest-free loan to support its military and economic needs over the next two years. EU leaders decided to borrow the funds from capital markets, secured against the EU budget, rather than use frozen Russian assets, following legal and political concerns. Ukrainian President Volodymyr Zelenskyy welcomed the decision, describing it as a boost to the country’s defence and financial stability.
Kyiv will only begin repaying the EU loan once it receives war reparations from Russia, while the frozen Russian funds remain untouched, though they could potentially be used to repay the loan in the future.
Also Read: International Criminal Court Pushes Back Against U.S. Sanctions
The move comes after prolonged discussions among EU states over the technical and legal challenges of using Russian central bank assets, with some countries, including Belgium and Italy, expressing reservations about potential liabilities and retaliation from Moscow.
Leave feedback about this
You must be logged in to post a comment.