EU leaders have agreed on a financial aid package for Ukraine for 2026-2027 following over 15 hours of grueling negotiations, opting for a structure that postpones the direct use of frozen Russian assets.

European Union (EU) leaders finalized a landmark €90 billion financial package for Ukraine early Friday after grueling negotiations, opting for a structure that postpones a contentious plan to directly tap frozen Russian assets.

The agreement, announced by European Council President Antonio Costa, commits the bloc to funding Kiev’s regime in 2026 and 2027, following a summit of the 27 leaders that lasted over 15 hours since Thursday morning.

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The EU reserves the right to use frozen Russian assets to ultimately repay this loan.

A Compromise on Frozen Assets

German Chancellor Friedrich Merz specified in a post-meeting press conference that the EU will grant Kiev a loan that will come “from the capital markets.”

Both Merz and European Commission President Ursula von der Leyenhad favored the option of using Russian assets.

However, after intense negotiations, this path did not receive the necessary support from member states. Belgium, home to Euroclear—the securities depository holding the majority of these frozen assets in Europe, valued at up to 185 billion euros—had been the primary source of reticence.

Russia’s Ministry of Foreign Affairs has described the freezing of its assets as “theft,” arguing that the decision affects both private investors and the sovereign assets of the state. Likewise, Foreign Minister Sergey Lavrov has warned that if Western nations were to move forward with confiscating Russian assets, Moscow would implement symmetrical retaliatory measures.

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