EU prepares decision on 90 billion euros for Ukraine: what is known about the plan.

According to ТСН: The European Union is on the verge of making a difficult decision that could be historic. Leaders of 27 countries are trying to find a way out of the financial crisis that Ukraine is facing.

"This is not only about Ukraine's financial survival, but also about whether the European Union is ready to use frozen assets of the aggressor state for geopolitical purposes for the first time. A wrong move could undermine trust among EU countries, while a lack of decision threatens to leave Ukraine alone in the face of financial collapse," journalists note.

According to estimates by the International Monetary Fund, Ukraine will need about 137 billion euros by 2026-2027 to cover essential budgetary, social, and defense expenses. These funds must arrive by spring, otherwise the country could find itself in a difficult financial situation.

The main idea of the European Commission is to provide Ukraine with a rehabilitation loan of 90 billion euros, which will be guaranteed by frozen Russian assets. The total amount of these assets in Europe is 210 billion euros, most of which belongs to the Central Bank of the Russian Federation and is held by the Belgian company Euroclear.

According to the scheme, the loan will be repaid only after the war with Russia is over and it pays reparations. In addition, the funding is supported by the UK, Canada, and Norway.

"Politically, this plan is attractive, but a qualified majority is needed for its approval, so Hungary cannot block the decision alone. However, Belgium expresses particular concerns, fearing lawsuits from the Russian Federation," the publication continues.

An alternative proposed by the EU is to repeat the pandemic scenario — raising funds on international financial markets on behalf of the European Union.

Will a way to agreement be found?

The Chancellor of Germany Friedrich Merz assessed the chances of reaching an agreement on the use of frozen Russian assets to finance Ukraine's defense as '50-50'. Merz also emphasized that Ukraine will need funding for at least two more years after the end of the first quarter of 2026.

In April 2026, Ukraine could face a budget deficit of over 70 billion euros. Without new revenues, Kyiv will have to cut state spending, which could threaten the country's economic stability and defense four years after the start of the full-scale war.

Additionally, it has become known that the European Central Bank refused to guarantee the payment of Ukraine's 'reparatory loan' of 140 billion euros, as it believes that the European Commission's proposal violates its mandate.

Now the EU is at a crossroads: can it develop a common approach to supporting Ukraine, or will it leave this country without the necessary resources at a critical moment? This decision depends not only on the stability of Ukraine but also on the entire security architecture in Europe.