WASHINGTON — Europe has agreed to hand Ukraine a €105 billion loan that will keep the country fighting Russia for another two years while the U.S. continues to negotiate peace terms. The agreement, settled in Brussels after days of long‑hanging talks, allows Kyiv to tap into the European Union’s own budget for a much‑needed cash boost.
European Council President Antonio Costa told reporters on Friday that the loan will “address the urgent financial needs of Ukraine.”
The deal fell short of the group’s most ambitious plan: using frozen Russian state assets as collateral. That option collapsed at the eleventh hour, but the money still arrives during a critical juncture. Ukrainian officials warn that without outside funding, the war effort could run out of cash in early 2026.
Keeping Kyiv afloat with military aid will become even more essential if Vladimir Putin pushes through the war despite vigorous U.S. diplomacy. U.S. officials have largely avoided outlining penalties if Russia refuses to agree to the American peace blueprint, preferring instead to extend the negotiation talks into the weekend.
President Volodymyr Zelensky welcomed the loan as a lifeline. He wrote on X: “This is significant support that truly strengthens our resilience.” He added, in a quoted string: “It is important that Russian assets remain immobilized and that Ukraine has received a financial security guarantee for the coming years.”
The incoming funds will help Ukraine purchase weapons from the United States. Republican senators this week highlighted the need to boost the American defense industry, arguing that years of underinvestment require a fresh wave of investment to scale up production and meet U.S. defense needs.
In summary, Europe’s €105 billion loan provides a critical financial shock‑absorber for Kyiv as the country continues to fight Russia and negotiate a possible peace settlement.
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