• EU leaders agreed on a €90 billion ($105 billion) loan to Ukraine.
• The decision is seen as a key political message to Russia regarding the ongoing war.
• Frozen Russian assets were not used to fund the loan due to legal complications.

On Friday, EU leaders finalized a significant financial package amounting to €90 billion ($105 billion) to support Ukraine, confirming their commitment to the country amidst ongoing challenges from Russia. German Chancellor Friedrich Merz emphasized that this loan sends a "clear signal" to Moscow, reinforcing Western unity in the face of aggression, stating, “This war will not be worth it” according to aa.

The agreement consists of an interest-free loan aimed at aiding Ukraine's military and economic stability over the next two years. French Foreign Minister Jean-Noel Barrot hailed the decision as "historic," signifying Europe taking charge of its security in reaction to Russia's actions, as he remarked, "With European security at stake, we are taking our destiny into our own hands" according to aa.

Despite the agreement, the original intention to utilize frozen Russian state assets to bolster the funds was abandoned due to legal concerns. Reports indicate that EU officials opted instead to fund the loan through capital market borrowing, with European Council President António Costa reaffirming their commitment to safeguard frozen assets for future use in reparations, stating, “We committed, we delivered” according to latimes and indiatimes.

Moreover, Italian Prime Minister Giorgia Meloni expressed satisfaction that "common sense prevailed," ensuring a solution with a robust legal framework was found, reinforcing that the loan is essential for Ukraine’s survival during this critical period, as confirmed in her statements to reporters after the EU Council meeting according to aa.