Analysis: In reality, EU’s Ukraine deal is a plan B driven by division – it won’t go unnoticed in Moscow
By Alistair Bunkall, Europe correspondent
The EU has agreed a deal to fund Ukraine for the next two years, just not the one it had planned.
Talks to unlock frozen Russian assets went into the early hours of Friday morning, eventually reaching a conclusion just before 3am.
Belgium had always opposed the use of Russian assets on the basis that most are being held in a Brussels-based clearing house, therefore leaving them legally exposed to any Russian retaliation.
With support from other members, including Italy, the Belgians successfully argued for a Plan B that had initially been rejected: jointly raising a €90bn interest-free loan, borrowed against untapped funds in the bloc’s budget.
It shares out responsibility for the money more evenly across member states, although three countries – Hungary, Czechia and Slovakia – won’t be a part of the agreement.
Ukraine will have to repay the loan but at no set date and only from reparations agreed with Russia, if that ever happens.
The EU says it has reserved the right to use the frozen assets if no deal is reached between Ukraine and Russia in the future that includes reparations from Moscow.
Although he tried to celebrate it as a win, in reality, it is a setback to German Chancellor Friedrich Merz and other Eastern European states, which had argued most strongly in favour of using the Russian assets.
But Ukraine has its money, and won’t care too much how it comes.
However, the divisions in Europe won’t go unnoticed by Moscow – which will conclude its threats against Europe were ultimately successful.