L to R: Danish Prime Minister Mette Frederiksen, European Council President António Costa, and European Commission President Ursula von der Leyen announce Ukraine loan deal, Brussels, Belgium, December 19, 2025

Thursday’s Coverage: EU Considers “Reparations Loan” to Kyiv from Frozen Russian Assets

UPDATE 0743 GMT:

Donald Trump has signed a $900 billion US defense spending bill which includes $800 million in military assistance for Ukraine.

The House passed the bill in a 312-112 vote, and the Senate by 77-20 on Wednesday.

Kyiv will receive $400 million annually in fiscal years 2026 and 2027 through the Ukraine Security Assistance Initiative (USAI), financing weapons contracts with U.S defense companies.

The bill requires the Defense Department to notify Congress within 48 hours of any decision to restrict intelligence sharing with Ukraine.

The Pentagon cannot reduce the number of US troops “permanently stationed in or deployed” to Europe below 76,000 for longer than 45 days.

ORIGINAL ENTRY: The European Union has agreed a €90 billion ($105.5 billion) loan to cover 2/3rds of Ukraine’s financial needs through 2027.

The EU made the pledge after failing to reach consensus on a “reparations loan” drawn from €210 billion ($246 billion) in frozen Russian assets, mainly because of objections by Belgium.

European Council President António Costa told reporters early Friday, “We committed and we delivered.” He noted, that despite the failure to complete the reparation loan, “The union reserves its right to make use of the immobilised assets to repay this loan.”

The deal for the €90 billion loan was sealed by Hungary’s decision not to use its veto. Hungary — led by long-time Russian ally Viktor Orbán — Slovakia, and Czechia will make no financial contribution to the loan.

German Chancellor Friedrich Merz said the agreement was “a decisive message because Putin will only make concessions once he realises his war will not pay off”. He echoed Costa:

If Russia does not pay reparations we will – in full accordance with international law – make use of Russian immobilised assets for paying back the loan.

Danish Prime Minister Mette Frederiksen noted that it was “quite something” to get the agreement. She cautioned:

There are a lot of people outside the European Union and unfortunately also inside the European Union who tries to divide us. It is getting more and more difficult and I think this will continue.

Zelensky: “This Truly Strengthens Our Resilience”

Earlier Belgium, which holds 88% of Russian funds in the EU, had demanded unlimited budget guarantees from other member states if Russia won a successful claim for damages.

Belgian Prime Minister Bart De Wever said, despite intense lobbying by Ukraine President Volodymyr Zelensky and other European leaders:

There were so many questions that I said, “I told you so, I told you so.” There are a lot of loose ends. And if you start pulling at the loose ends in the strings, the thing collapses.

Russia had pressed Belgium to hold out against an agreement. The Russian Central Bank is suing Euroclear, the Belgian company which holds frozen assets, for $230 billion. Euroclear executives and Belgian Government officials are facing a campaign of intimidation orchestrated by Russian intelligence.

The Trump Administration reportedly added to the pressure by demanding “the money back” if the EU used the assets. It lobbied countries such as Italy to block consent.

But any disappointment was swept away early Friday by the confirmation of the EU budget loan. Ukraine President Zelensky posted: