EU Drops Russian Asset Plan, Opts For $105 Billion Ukraine Loan

• The EU abandoned its plan to use frozen Russian assets, opting instead for a €90 billion ($105 billion) loan to Ukraine for 2026-2027.
• The frozen assets plan faced legal, political, and security hurdles, including fears of Russian retaliation and lawsuits against Euroclear.
• Belgium, holding most Russian assets, opposed the plan without binding liability guarantees from all EU members, which some states refused.
• The loan decision, reached after intense negotiations, ensures Ukraine's financial stability and demonstrates EU unity amid geopolitical pressures.
• Frozen Russian assets (€210 billion) will remain immobilised until Russia pays reparations, potentially used to repay the EU loan later.

Why It Matters: EU prioritizes unity and stability, securing Ukraine's funding via loan while delaying Russian asset use.