Ukraine war live: Zelenskyy says EU agreement to loan €90bn to Kyiv ‘truly strengthens our resilience’

Ukrainian president expresses gratitude to European leaders for loan plan despite their failure to take up proposal to use frozen Russian funds

• EU leaders agree €90bn loan for Ukraine but without use of frozen Russian assets

The EU agreement to provide Kyiv with an €90bn interest-free loan will cover most of Ukraine’s urgent financial needs but be secured against EU borrowing rather than frozen Russian assets.

As Jennifer Rankin reports from Brussels, after the summit talks ended in the early hours of Friday, the European Council president, António Costa, told reporters: “We committed and we delivered.”

The leading option at the EU summit had been to tap about €200bn of Russian central bank assets frozen in the EU to generate a loan for Kyiv but that fell through after Belgium – where the bulk of the assets are held – demanded guarantees on sharing liability that proved too much for other countries. Belgian prime minister Bart De Wever said as the summit wrapped up that he believed “rationality has prevailed”.

German chancellor Friedrich Merz had pushed hard for using Russia’s frozen assets but still said the final decision on the EU-backed loan “sends a clear signal” to Vladimir Putin. European Commission president Ursula von der Leyen said Ukraine would need to repay the loan only once Moscow paid for the damages it has caused.

Hungary’s prime minister, Viktor Orbán, agreed not to block the loan to Ukraine to meet its military and economic needs for the next two years as long as his country, Slovakia and the Czech Republic were excluded from the guarantees for the debt. The deal would not affect the financial obligations of the three countries, which did not want to contribute to the financing of Ukraine, a text said on the agreement said.

Zelenskyy had urged EU leaders at the start of the summit to use the frozen Russian assets, saying: “It’s moral, it’s fair, it’s legal.” The EU estimates Ukraine needs an extra €135bn to stay afloat over the next two years.

In Washington, Donald Trump urged Ukraine to move swiftly on a peace deal ahead of fresh talks expected in Miami. The US president told reporters in the Oval Office: “Well, they’re getting close to something, but I hope Ukraine moves quickly. I hope Ukraine moves quickly because Russia is there. And you know, every time they take too much time, then Russia changes their mind.” Trump envoys Steve Witkoff and Jared Kushner plan to meet Russian officials in Florida this weekend, a White House official said, after the envoys held talks with a Ukrainian delegation in Berlin last Sunday and Monday.
With agencies

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Source: www.theguardian.com

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