Post by : Badri Ariffin

In a significant development, European Union leaders have reached a crucial agreement to provide a loan of €90 billion to support Ukraine's government and military operations over the next two years. This breakthrough followed extensive negotiations in Brussels that lasted more than 24 hours and were initially hindered by discussions around the potential use of frozen Russian assets as a funding source.

European Council President Antonio Costa shared the announcement on X, highlighting the EU's commitment to supporting Kyiv. The financial package, funded by the EU’s common budget, aims to stabilize Ukraine's embattled economy, sustain critical public services, and assist its defense initiatives.

Stalled Talks Over Frozen Assets

The summit was complicated by disagreements concerning approximately €200 billion in frozen Russian assets, primarily held in Belgium. Ukrainian President Volodymyr Zelensky had pressed EU nations to utilize these funds to aid his country, arguing that Russia should be held accountable for its invasion.

However, Belgium sought stronger assurances regarding potential legal liabilities stemming from the seizure of these assets, leading to a rift among EU members. Without a consensus on this matter, leaders ultimately opted to pursue borrowing as a quicker and legally safer route to provide the needed assistance.

Belgian Prime Minister Bart De Wever defended the strategy, indicating that it averted potential “chaos and division” within the EU, showcasing unity at a critical time.

Growing Economic Strains on Ukraine

As the war nears its third anniversary, Ukraine faces mounting financial pressures. Zelensky has cautioned that without additional external support, the country could encounter severe shortfalls by spring, potentially hindering defense production—including vital drone manufacturing.

EU assessments suggest that Ukraine will need approximately €135 billion in funding over the next two years to maintain financial stability, with a significant gap expected to arise by April. While this new loan is substantial, it fails to meet the entire funding requirement, indicating that further international aid will be essential.

European Leaders Convey Political Will

Despite internal conflicts, several EU leaders framed the agreement as a united front aimed at Moscow.

German Chancellor Friedrich Merz, who initially advocated for the asset plan, mentioned that the decision still sends a “clear signal” to Russian President Vladimir Putin regarding Europe’s dedication to Ukraine’s defense and sovereignty.

Poland's Prime Minister Donald Tusk emphasized the need for European governments to confront this moment with resolve, suggesting that inaction would only empower Russia.

Additionally, French President Emmanuel Macron posited that Europe should consider pathways for diplomatic engagement with the Kremlin, maintaining dialogue as a possibility in the pursuit of a long-term resolution even while supporting Ukraine.

US-Russia Peace Talks on the Horizon

This EU decision coincides with heightened international diplomatic efforts, as US officials report that representatives from Washington and Moscow are set to convene in Miami this weekend to discuss possible peace initiatives. Kremlin envoy Kirill Dmitriev is expected to attend alongside Trump advisers Steve Witkoff and Jared Kushner.

In a parallel development, Zelensky confirmed that delegations from Ukraine and the US will have further discussions in the United States on Friday and Saturday. Kyiv aims to secure clearer assurances from Washington regarding long-term security guarantees to deter future Russian invasions.

A Temporary Provision Amid Ongoing Conflict

While this loan represents a significant advancement, it serves merely as a temporary measure. Ukraine will require continuous financial and military support, as the conflict shows no imminent signs of resolution. The EU's internal debates regarding Russian assets are likely to resurface, especially as calls grow for Moscow to take responsibility for the economic damage caused by the war.

#Europe #World News