Europe Loans Ukraine $100B, Skips Frozen Russian Assets Amid Divisions

• Europe approved a $105 billion interest-free loan to Ukraine for 2026-2027, avoiding the use of frozen Russian assets.
• The initial plan was a 'reparations loan' against $245 billion in Russian central bank assets held by Euroclear, with Kyiv repaying if Moscow paid reparations.
• The asset use plan faced strong opposition from Belgium, Hungary, Czech Republic, and Slovakia due to legal concerns and fear of Russian retaliation.
• Hungary's PM Viktor Orbán, a key opponent, secured an exemption for his country and others from the new loan scheme.
• Experts call the loan deal a 'landmark' and 'unprecedented' step for EU foreign policy and resource mobilization.

Why It Matters: Europe chose a loan for Ukraine over using frozen Russian assets due to internal divisions and legal concerns.