EU leaders on Friday announced plans for billions of dollars in funding for Ukraine’s economy and military over the next two years. The plan is currently being financed through cash borrowings and does not tap into the billions of dollars of frozen Russian assets held in the region.
The International Monetary Fund predicts that Ukraine will face a funding shortfall of $160 billion (137 billion euros) over the next two years, due in part to U.S. funding cuts. The EU wanted to pay two-thirds of that amount, about $105 billion (90 billion euros).
EU leaders have been debating whether to use frozen Russian assets to fund further aid to Ukraine during a key summit that began on Thursday. The possible use of such assets has been mired in controversy, with critics arguing that it is legally questionable and risks retaliation by Moscow.
Following the announcement, Ukrainian President Volodymyr Zelenskiy said he was “grateful” to EU leaders who had agreed to provide assistance.
“This is critical support that will truly strengthen our resilience,” Zelenskiy wrote in a post about X on Friday.
“It is important that Russian assets remain fixed and that Ukraine receives guarantees of financial security for the coming years.”
Earlier on Friday, the President of the Council of the European Union said the European Union had approved the Ukraine financing deal, saying: “We promised and we delivered.”
Meanwhile, Russia’s top economic envoy on Friday welcomed the European Union’s decision not to use frozen Russian assets to fund loans to Ukraine.
“The voice of reason within the EU has stopped the illegal use of Russian foreign exchange reserves to finance Ukraine,” Kirill Dmitriev wrote in a post on X.
