EU Approves €90 Billion Interest-Free Loan for Ukraine as Russia War Enters Fourth Year

Ursula von der Leyen announces EU €90 billion loan for Ukraine
EU Approves €90B Loan for Ukraine Led by Ursula von der Leyen

EU Announces Historic Financial Support for Ukraine

Brussels, December 20, 2025

The European Union has approved a €90 billion interest-free loan for Ukraine, marking one of the largest financial commitments since Russia launched its invasion in 2022. The funding will be released over the next two years to support Ukraine’s defense capabilities, economic stability, and reconstruction efforts.

Von der Leyen Leads Push for Ukraine Aid

EU Commission President Ursula von der Leyen played a central role in securing the agreement, urging member states to maintain long-term support for Kyiv. She described the loan as essential to ensuring Ukraine’s resilience, stressing that Europe’s security is directly linked to Ukraine’s ability to withstand Russian aggression.

Zelensky Welcomes EU Support

Ukrainian President Volodymyr Zelensky, speaking during a visit to Poland, praised the EU decision, calling it a vital lifeline for Ukraine. He said the funding would help sustain military operations while keeping the economy functioning amid continued attacks on infrastructure and civilian areas.

Disagreements Over Frozen Russian Assets

Despite the loan approval, EU nations failed to finalize a plan to use frozen Russian assets for additional aid. Several member states raised legal and political concerns, delaying further financial measures against Moscow.

Putin Rejects Any Compromise

Russian President Vladimir Putin, in his year-end press conference, reiterated that Russia would not compromise on its objectives in Ukraine. He accused Western nations of prolonging the war by supplying financial and military assistance to Kyiv.

Civilian Toll Rises as War Intensifies

The announcement comes as Russian air and drone strikes intensify across Ukraine. Recent attacks in Zaporizhzhia caused civilian casualties and damaged critical infrastructure, adding pressure to an economy already weakened by inflation and energy shortages.

Analysts Warn More Military Aid May Be Needed

Experts say the €90 billion loan will help stabilize Ukraine’s economy and prevent financial collapse. However, they caution that without sustained military assistance, Russia could continue making territorial gains despite Ukraine’s resistance.

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