EU Clears €90 Billion Zero-Interest Aid for Ukraine Amid Cash Crunch

• EU leaders approved a €90 billion zero-interest support package for Ukraine for 2026-27.
• The aid will be funded through borrowing on capital markets, not frozen Russian assets.
• Ukraine faces an acute cash crunch, needing €137 billion for 2026-27, and could run out of funds by spring.
• Initial plans to use frozen Russian assets were rejected due to legal and financial concerns, particularly from Belgium.
• Despite initial opposition from Hungary, Slovakia, and Czech Republic, the deal was approved after assurances.

Why It Matters: EU secures €90 billion zero-interest loan for Ukraine, avoiding frozen Russian assets amid urgent need.