European Union leaders have reached a landmark agreement to provide Ukraine with a substantial financial lifeline, approving a colossal €90 billion interest-free loan. The funds are earmarked to support the nation's pressing military and economic requirements over the coming two years.
Historic Deal Secured After Late-Night Negotiations
The decisive agreement was announced on Friday 19 December 2025 by EU Council President Antonio Costa. Following intensive discussions that stretched deep into Thursday night, the bloc's leaders united to back the critical support package for Kyiv. Costa confirmed the breakthrough in a social media post, stating, "We have a deal. Decision to provide 90 billion euros ($106 billion) of support to Ukraine for 2026-27 approved. We committed, we delivered."
Addressing Belgian Security Concerns
A significant hurdle in the negotiations involved providing reassurances to Belgium. EU leaders worked to secure guarantees that would shield the country from potential Russian retaliation for its backing of the loan. These guarantees were crucial in gaining unanimous support for the financial package, ensuring all member states felt protected in their commitment to Ukraine's sovereignty.
Funding Details and Strategic Implications
While President Costa's announcement did not specify the exact mechanisms for raising the vast sum, the commitment represents a powerful signal of the EU's long-term solidarity. The interest-free loan is designed to provide stable, predictable funding for Ukraine's dual needs:
- Military support to bolster defence capabilities.
- Economic stability to maintain essential state functions and reconstruction efforts.
This move underscores a strategic European commitment to ensuring Ukraine can continue its resistance and rebuild its economy amidst ongoing conflict, setting a financial framework for the 2026-2027 period.
