EU Agrees to Interest-Free Loans to Ukraine, Disagrees on Using Russian Assets

International Desk, PNN

The European Union (EU) has decided to provide Ukraine with interest-free loans for the next two years to meet its military and economic needs amid the ongoing war with Russia. European Council President Antonio Costa confirmed the decision on Friday morning.

EU leaders agreed that funds for Ukraine will be raised through international capital markets, temporarily postponing plans to use seized Russian state assets. Costa stated that Ukraine will receive a total of €90 billion in aid for 2026 and 2027.

The EU guarantees the loans, ensuring no financial burden falls on Hungary, Slovakia, or the Czech Republic, which had opposed financing Ukraine. Ukrainian President Volodymyr Zelensky welcomed the decision, saying it strengthens Kyiv’s resilience and economic stability. Russian President Vladimir Putin’s economic envoy Kirill Dmitriev described it as a “victory for law and common sense,” noting that avoiding Russian assets prevents potential legal and economic conflicts.

Experts believe the decision provides an immediate and practical financing path for Ukraine while avoiding division among EU member states. However, legal and political debates regarding Russian assets are expected to continue.