European Union leaders have agreed a major new long-term financial support package for Ukraine, signalling continued backing for Kyiv as the war with Russia enters another year. The deal centres on a multi-billion-euro loan, underwritten by profits generated from frozen Russian state assets held in Europe.
At a summit in Brussels, EU leaders said the agreement would provide Ukraine with predictable funding for military support, public services and reconstruction, while avoiding the need for repeated, politically fraught negotiations. Ukrainian President Volodymyr Zelenskyy, addressing leaders remotely, welcomed the move as “a vital signal of unity” and said it would help Ukraine plan beyond short-term emergency aid.
The loan mechanism allows the EU to use interest earned on immobilised Russian assets, rather than seizing the assets themselves — a legal compromise designed to limit the risk of court challenges while still making Moscow pay a financial price for its invasion. Several member states had previously raised concerns about legal exposure and market stability.
Alongside the loan, leaders also agreed to extend trade liberalisation measures for Ukraine, keeping tariffs suspended on most Ukrainian exports into the EU. This is intended to support Ukraine’s economy while it remains under intense military pressure and infrastructure damage.
Not all member states were fully aligned. Some eastern European countries pushed for stronger safeguards for domestic farmers, while Hungary again voiced reservations over long-term commitments to Ukraine. Nevertheless, the package was approved after last-minute negotiations.
EU officials said the agreement underlines that Europe is preparing for a prolonged conflict, even as diplomatic efforts continue. For Kyiv, the deal offers financial breathing space at a time when uncertainty over future US support remains a growing concern.
