EU Commits €90 Billion to Ukraine Amidst Frozen Asset Debate

The European Union has agreed to provide Ukraine with €90 billion in aid, avoiding the use of frozen Russian assets, which posed legal and financial challenges. Ukraine appreciates the substantial support, while Russia criticizes the EU's inability to use its assets. EU leaders also discuss a Mercosur trade agreement.

The European Union has pledged €90 billion in support for Ukraine over the next two years, foregoing an ambitious plan to utilize frozen Russian assets. The commitment comes amid concerns that without this financial aid, Ukraine would deplete its resources by mid-next year, which could have significant geopolitical ramifications.

During a summit in Brussels, EU leaders decided to fund Ukraine's defense through borrowing rather than tapping into the frozen assets of Russia, assuaging concerns over financial and legal risks — particularly given Belgium's hosting of €185 billion of these assets. Ukrainian President Volodymyr Zelenskiy and other officials, including Italy's prime minister, welcomed the compromise.

Meanwhile, Russia expressed approval of the EU's decision not to use its reserves, labeling it a victory for legality. The dialogue over the assets was complex, with Germany pushing for a reparations loan. The summit also touched on broader trade discussions with Mercosur, showing signs of a potential agreement despite current challenges.

(With inputs from agencies.)