EU Pledges Interest-Free €90 Billion Loan to Ukraine Amid Ongoing Crisis

EU leaders have agreed on a significant €90 billion interest-free loan to Ukraine, aimed at supporting the country's military and budgetary requirements for two years. The loan's repayment hinges on Russia's payment of war reparations, with EU considering using Russian assets if necessary.

In a landmark decision, EU leaders have unanimously agreed to grant Ukraine an interest-free loan of €90 billion, or $105.53 billion, to assist with its military and budgetary needs over the next two years, announced German Chancellor Friedrich Merz on Friday.

The agreement specifies that Ukraine will be obliged to repay the loan only if Russia pays reparations for its conflict. Chancellor Merz disclosed that following extensive discussions in Brussels, EU leaders reserved the right to utilize immobilized Russian assets within the bloc should Moscow fail to compensate.

With the ongoing geopolitical tensions, this decision marks a significant step by the EU in supporting Ukraine amidst its struggles. The exchange rate at the decision time stands at $1 equaling 0.8528 euros.

(With inputs from agencies.)