EU Grants Massive Interest-Free Loan to Support Ukraine Amidst Ongoing Conflict

The European Union has decided to give Ukraine an interest-free loan of 90 billion euros to aid its military and budgetary expenses for the next two years. Repayment is conditional on Russia providing war reparations, with potential use of Russian assets in the EU as collateral.

The European Union's leadership has taken a decisive step in supporting Ukraine, unanimously agreeing to offer an interest-free loan totaling 90 billion euros, equivalent to $105.53 billion, to sustain its military and budgetary needs over the coming two years. This information was confirmed by German Chancellor Friedrich Merz early Friday.

The loan stipulates repayment only if Russia provides reparations for its ongoing conflict, Merz announced following an extensive meeting of EU leaders held in Brussels. Additionally, the EU maintains the right to utilize immobilized Russian assets within its jurisdiction as a means of repayment, should Russia fail to fulfill its reparations obligations.

As geopolitical tensions persist, this financial assistance represents a significant commitment by the EU to bolster Ukraine amidst adversity, reflecting the bloc's strategic stance and humanitarian considerations. Amid currency exchange dynamics, the move underscores the EU's broader economic and political maneuvers in the region. (Exchange rate: $1 = 0.8528 euros)

(With inputs from agencies.)