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EU Seals €90 Billion Zero‑Interest Ukraine Loan With Conditional Recourse to Frozen Russian Assets

Shelving confiscation of Russian reserves, the deal underscores unresolved legal risks, with funding gaps persisting.

Overview

  • EU leaders agreed a two‑year, €90 billion zero‑interest loan for Ukraine after all‑night summit talks in Brussels.
  • Repayment could draw on frozen Russian state assets only if Moscow refuses to pay war damages, and first disbursements may start in January, according to Chancellor Friedrich Merz.
  • A plan to directly seize up to about €210 billion in Russian central‑bank reserves was rejected following opposition led by France and Italy and concerns centered in Belgium over legal and political risk.
  • Vladimir Putin warned of severe consequences and signaled legal pushback against any asset seizure during his annual press conference.
  • Germany’s Bundesrat approved a broad domestic package including mandatory medical screening for men born from January 2008 under the new Wehrdienst law, a pension level floor held at 48% to 2031 with expanded Mütterrente, a commuter allowance of 38 cents from the first kilometer, a permanent VAT cut on restaurant meals to 7%, and health‑sector savings.