EU Unites to Fund Ukraine Without Russian Assets

The European Union has decided to loan 90 billion euros to Ukraine using EU borrowing, avoiding the use of frozen Russian assets. This decision was made due to complexities and resistance surrounding the use of Russian assets, ensuring Ukraine's continued defense against Russia for the next two years.

The European Union committed to loaning Ukraine 90 billion euros, bypassing the use of frozen Russian assets for the next two years in its defense against Russia. This move, concluded in Brussels, sidesteps the politically fraught idea of using Russia's sovereign cash due to widespread disagreements.

A plan to use Russian immobilized assets was shelved, largely due to Belgium's opposition, where a substantial portion of the assets are located. EU summit chairman Antonio Costa emphasized the urgency of providing a loan backed by the European Union budget.

Challenges included Hungarian opposition, which eventually allowed the scheme to proceed without financial impact on Hungary, Slovakia, and the Czech Republic. Meanwhile, the frozen Russian assets remain, awaiting Moscow's payment of war reparations to Ukraine.

(With inputs from agencies.)