EU Leaders Meet to Plan €140 Billion Loan for Ukraine

International Desk | PNN

European Union leaders have convened in Brussels to discuss further support for Ukraine, including a plan to provide a €140 billion (€163.27 billion USD) loan by using funds deposited by Russia. This proposal has sparked a strong reaction from Russia.

European Council President Antonio Costa welcomed Ukrainian President Volodymyr Zelensky as a "future member" and stated that a "political decision" would be made to use the funds held in Russia's central bank for 2026 and 2027 to raise funds for Ukraine.

Swedish Prime Minister Ulf Kristersson said he had seen "broad support" for this measure. His Finnish counterpart Petteri Orpo expressed hope that the European Commission would soon draft a specific proposal to enable the use of these funds next year.

However, Belgium, where the European Securities Depository Euroclear holds the largest portion of Russia's deposits (around $225 billion), has expressed doubts about the legal basis for this. Belgian Prime Minister Alexander De Croo said that he had not yet seen the legal justification for this decision and that it would be "paused" if his country's concerns were not addressed.

European Union High Representative Kaya Kallas stated that the bloc was prepared to provide legal assurances for Belgium and emphasized that the risk of Russia's assets should be shared.

Meanwhile, Ukrainian President Zelensky is pushing EU leaders for further assistance and new military supplies. He discussed arms partnerships with European or U.S. arms manufacturers for Ukraine.

So far, Russia’s response has been harsh. Russian Foreign Ministry spokesperson Maria Zakharova called the confiscation of Russian assets "theft" and unlawful. She warned that Russia would take "harsh measures" in response.

Additionally, new EU and U.S. sanctions could place further pressure on the Russian economy. The European Union is imposing new sanctions targeting Russian banks, crypto exchanges, and other institutions, which will have a significant impact on Russia's economic activities.

This meeting marks a critical moment for Ukraine, as European leaders have committed to taking stronger actions against Russia's aggression.