European Union leaders have reached an agreement to provide Ukraine with a €90 billion (£79 billion; $105 billion) loan after failing to reach consensus on using frozen Russian assets. The decision came after more than a day of intense discussions at an EU summit in Brussels.

The loan covers Ukraine’s military and economic needs over the next two years. Announcing the decision, EU Council President Antonio Costa wrote on X, “We committed, we delivered,” confirming that the loan would be backed by the EU’s common budget.

Ukrainian President Volodymyr Zelensky had strongly urged EU leaders to use around €200 billion worth of frozen Russian assets to support Ukraine. However, Belgium, where most of these assets are held, asked for guarantees on how liability would be shared. This demand was not acceptable to several other EU countries, leading leaders to abandon the asset plan and instead opt for borrowing.

Belgian Prime Minister Bart De Wever defended the decision, saying EU leaders avoided “chaos and division” by choosing the loan route. He added, “We remained united.”

Ukraine’s financial situation is becoming increasingly serious. Zelensky warned that the country is only months away from running out of money. He said that without fresh funding by spring, Ukraine would “have to reduce production of drones.” According to EU estimates, Ukraine needs an additional €135 billion over the next two years, with the financial crunch expected to begin in April.

German Chancellor Friedrich Merz, who had earlier supported the idea of using frozen Russian assets, said the loan decision still “sends a clear signal” to Russian President Vladimir Putin. Russia had previously warned EU leaders against using its frozen funds. However, Polish Prime Minister Donald Tusk said Europe had to “rise to this occasion” and take responsibility in supporting Ukraine.

In a separate development, French President Emmanuel Macron said it could be “useful” for Europe to re-engage with Russian President Vladimir Putin. Macron stated, “I believe that it's in our interest as Europeans and Ukrainians to find the right framework to re-engage this discussion,” adding that Europeans should find the means to do so “in the coming weeks.”

The agreement provides Kyiv with a crucial financial lifeline at a time of increased diplomatic activity. US President Donald Trump is pushing for a quick deal to end Russia’s war on Ukraine, adding pressure to ongoing international efforts.

According to a White House official quoted by AFP news agency, US and Russian officials are expected to meet in Miami this weekend to continue talks on a possible peace plan. Kremlin envoy Kirill Dmitriev is expected to meet Trump’s envoys, Steve Witkoff and Jared Kushner.

At the same time, Zelensky announced that Ukrainian and US delegations will hold fresh talks on Friday and Saturday in the United States. He said he wants Washington to provide more clarity on the security guarantees it could offer Ukraine to prevent another invasion in the future.

The EU loan decision marks a major step in sustaining Ukraine’s war effort and economy, while broader diplomatic efforts continue on multiple fronts.