Everyone can claim victory, but it’s not a perfect dealpublished at 07:59 GMT
07:59 GMT
Paul Kirby
Europe digital editor
Ukraine’s Zelensky can leave Brussels relieved he has staved off bankruptcy, Belgium can claim victory for protecting Euroclear, where Russia’s frozen billions are held, and the EU collectively can be happy it’s found a deal.
So, in the words of Germany’s Friedrich Merz, it’s a “great success”. A €90bn interest-free loan that pays for two-thirds of Ukraine’s estimated needs from 2026-27.
In reality, though, it’s a bit of a messy compromise.
The money will be raised on the capital markets and “backed by EU budget headroom” – that’s the margin between actual EU contributions by member states in a year and the maximum the Commission can spend as part of the budget. There are exemptions for three Central European countries, Hungary, Slovakia and the Czech Republic, so 24 EU states will be liable for this loan.
That’s partially good news for Putin-friendly Viktor Orban in Hungary, but his aim was to stop funding Kyiv completely, so he can’t really claim success.
Russia is overjoyed its money isn’t being used, and Putin envoy Kirill Dmitriev is already crowing this morning that Europe’s “illegal moves… failed”. But that won’t mean Moscow will ever get its money back – because it’s now frozen indefinitely and it’s earmarked for war reparations.