European Council grants 90 billion Euro loan to Ukraine at 0% interest

On December 19, 2025, the European Council (EUCO) reached a significant agreement to provide Ukraine with a loan amounting to 90 billion Euros, which will carry a 0% interest rate. This financial support is intended to assist Ukraine amid ongoing challenges, particularly in light of the ongoing conflict with Russia.

Key Details

The decision to grant this substantial loan was made during a meeting of the European Council, where leaders from EU member states convened to discuss various pressing issues, including the situation in Ukraine. The loan is to be funded from the European Union"s budget, although the specific legal mechanisms for disbursing the funds to Ukraine have not yet been finalized. It is anticipated that these mechanisms will take several weeks to establish.

During the discussions, a proposed plan to seize Russian assets to finance the loan was ultimately rejected. This proposal faced opposition from several EU member states, leading to its dismissal during the EUCO meeting. Notably, Hungary, Slovakia, and the Czech Republic successfully negotiated exemptions from contributing to the loan, which means that the total sum of 90 billion Euros will be distributed among the remaining 24 EU member states based on their respective Gross Domestic Products (GDPs).

The decision to provide this loan reflects the EU"s ongoing commitment to supporting Ukraine during a time of crisis, particularly as the country continues to face economic and military pressures stemming from the conflict with Russia. The loan is expected to play a crucial role in stabilizing Ukraine"s economy and supporting its recovery efforts.

Background

Ukraine has been in a state of conflict since 2014, following Russia"s annexation of Crimea and the outbreak of hostilities in Eastern Ukraine. The EU has consistently provided financial and humanitarian assistance to Ukraine, recognizing the strategic importance of a stable and democratic Ukraine in the region. The 90 billion Euro loan is part of a broader effort by the EU to reinforce its support for Ukraine amidst ongoing geopolitical tensions.

What"s Next

As the EU works to finalize the legal framework for the loan, Ukraine will be closely monitoring developments. The establishment of the legal mechanisms is expected to be completed in the coming weeks, after which the funds can be effectively allocated to Ukraine. This financial assistance is crucial for Ukraine as it navigates the challenges posed by the ongoing conflict and seeks to rebuild its economy.

For further context on Ukraine"s situation, you can refer to related coverage, including the recent developments in the region and the meeting between Ukrainian President Volodymyr Zelensky and Polish President Karol Nawrocki, which highlights ongoing diplomatic efforts to strengthen ties and support for Ukraine.

For more information on the EU"s financial assistance to Ukraine, please see our article on the EU"s commitment to providing a 90 billion Euro interest-free loan.