Brussels: Leaders of the European Union are close to agreeing on a new financial support plan for Ukraine, aiming to secure funding for the country through 2026 and 2027 as the war with Russia continues.
According to draft conclusions discussed at the EU summit in Brussels, the bloc plans to raise money from financial markets and back the loans with the EU budget. The move is intended to ensure steady and predictable support for Ukraine’s government, public services, and economic stability over the next two years.
EU officials say the plan is designed to avoid repeated political deadlock over short term aid packages. By using the EU budget as a guarantee, the bloc hopes to reassure investors and keep borrowing costs low.
However, the agreement does not include all member states. Hungary, Slovakia, and the Czech Republic are expected to stay out of the joint borrowing arrangement, though they are not blocking others from moving ahead.
Alongside the loan plan, EU leaders are continuing talks on a more controversial option involving frozen Russian state assets held in Europe. Around 210 billion euros of Russian central bank funds remain frozen since the invasion of Ukraine. Some EU countries want to use the income from these assets, or even the assets themselves, to help finance loans for Kyiv.
Belgium, where a large share of the frozen funds are held, has raised concerns about legal risks and possible retaliation from Russia. Brussels has asked for strong guarantees from other EU members before any final decision is taken.
European Central Bank President Christine Lagarde said she was confident EU leaders would reach an agreement that respects legal limits while still delivering meaningful support to Ukraine.
Ukrainian officials have warned that without a clear financing decision soon, the country could face serious budget pressure by next spring. This has added urgency to the talks, with many EU leaders stressing that long term financial backing is essential for Ukraine’s survival and for Europe’s own security.
Final approval of the loan plan is expected once leaders settle the remaining legal and political issues at the summit.