EU Approves 90 Billion Euro Loan to Ukraine Through 2027

European Union leaders reached an agreement early Friday in Brussels to extend an interest-free loan of 90 billion euros to Ukraine, covering its military and budgetary needs through 2027, after intensive summit talks that stretched into the night. The decision provides a critical financial lifeline to Kyiv as it grapples with the ongoing war against Russia, though leaders stopped short of approving the use of frozen Russian assets to generate the funds.

The loan, equivalent to about 106 billion U.S. dollars, will be raised by the European Commission on capital markets and backed by unused capacity in the EU's seven-year budget, avoiding direct contributions from individual member states. EU Council President Antonio Costa announced the breakthrough on social media, stating, "We have a deal. Decision to provide 90 billion euros of support to Ukraine for 2026-27 approved. We committed, we delivered." The package addresses Ukraine's projected funding gap, estimated by the International Monetary Fund at 137 billion euros over the next two years, as the country faces mounting economic pressures and risks of default without swift aid.

Discussions at the summit focused on balancing...