EU Secures $90 Billion Loan for Ukraine's Defense with Joint Borrowing

The European Union agreed to a $90 billion loan for Ukraine using joint borrowing from capital markets, rather than frozen Russian assets, to support Ukraine's defense against Russia. The deal, excluding Hungary, Slovakia, and the Czech Republic from repayment obligations, follows complex negotiations amid security concerns.

The European Union has approved a €90 billion loan to fund Ukraine's defense against Russia, choosing to borrow from capital markets rather than utilizing frozen Russian assets. This initiative was announced after extensive discussions among EU leaders on the financial strategy for supporting Ukraine's defense efforts.

EU summit chairman Antonio Costa confirmed the deal on social media, emphasizing that the loan will not involve financial obligations from Hungary, Slovakia, and the Czech Republic. The funding will be backed against the EU budget and aims to sustain Ukraine's financial needs for the next two years.

This move comes as part of broader EU efforts to fortify its security amid Russian aggression. The plan involves continued work with the European Parliament on alternative funding measures and addressing the legal complexities associated with utilizing Russian assets.

(With inputs from agencies.)