Closing summary and best wishes for Christmas & New Year period
… and on that note, it’s a wrap for today!
EU leaders have pledged a €90bn loan for Ukraine to meet urgent financial needs, but failed to agree on the preferred option for many of securing that loan against Russia’s frozen assets in the bloc (10:46, 15:44).
Ukraine’s Volodymyr Zelenskyy has welcomed the move, saying it sent “a signal to the Russians that there is no point in continuing the war” as Ukraine had the means to defend itself (13:03, 16:14).
Belgium’s prime minister Bart De Wever hailed “a stable, legally robust and financially credible” solution adopted by the EU leaders as a result of late-night compromise after his country repeatedly declined to back the preferred proposal for an assets-backed reparations loan (11:51) – getting praise from his cat (15:57).
Most EU leaders have welcomed the compromise solution and offered their cautious backing for the scheme, agreed at an all-night meeting in Brussels (8:44, 9:23, 11:20, 13:14, 13:30, 14:26)
Leaders of the three central European countries which, in a EU first, opted-out of the new mechanism have welcomed the fact they are not part of the new mechanism (9:28, 9:35).
Ukraine says it has attacked a Russian “shadow fleet” tanker with aerial drones 1,250 miles (2,000km) from its borders, in the first such strike in the Mediterranean Sea since Moscow’s full-scale invasion nearly four years ago.
Meanwhile, Russian president Vladimir Putin struck a familiar hardline tone on the war in Ukraine in his at times bizarre (13:50) end-of-year press conference.
Putin insisted that Russia was not a threat (13:08) and was open to a peace deal under certain maximalist conditions (12:13), and it was Ukraine and the west’s fault there isn’t one (10:21) – and their responsibility to move towards it (11:57, 15:03).
The Russian leader also said the EU’s original plan for using frozen Russian amounts would have amounted to a “robbery” as he repeated his warnings about a possible legal challenge (10:55).
And that’s all from me, Jakub Krupa, for today.
As I sign off for Christmas, please accept my best wishes for the Christmas and New Year period to all of you, wherever you read this blog from.
In the meantime, if you have any tips, comments or suggestions, or just want to send your Christmas wishes, you can email me at jakub.krupa@theguardian.com.
I am also on Bluesky at @jakubkrupa.bsky.social and on X at @jakubkrupa.
Thank you for 2025, and see you in 2026!
Updated
US 'made good progress' in Ukraine talks, but 'ways to go' with 'hardest issues' discussed last, Rubio says
The US secretary of state, Marco Rubio, has been answering questions from journalists in the last half hour, and he was asked about the latest on Ukraine.
He said the US administration invested “a tremendous amount of time and energy” in ending this war, and is “trying to figure out what can Ukraine live with and what can Russia live with.”
“[We want to] sort of identify what both sides positions are and see if we can sort of drive them towards each other to some agreement,” he said.
“A negotiated settlement requires two things, both sides to get something out of it, and both sides to give something. And we’re trying to figure out, what can Russia give and what do they expect to get? What can Ukraine give and what can Ukraine expect to get? In the end, the decision will be up to Ukraine, and up to Russia will not be up to the United States.”
He added that “this is not about imposing a deal on anybody,” but trying to find where interests can “overlap.”
“I think we’ve made progress, but we have ways to go, and obviously the hardest issues are always the last issues.”
Updated
Ukraine's finance minister urges partners to keep working on reparations loan
Ukraine’s finance minister Serhiy Marchenko said on Friday that the European Union’s €90bn euros loan was in itself insufficient to fully cover the country’s financial needs, urging partners to continue work on a reparations loan, Reuters reported.
“The reparations loan is a systemic, long-term solution. It will ensure sustainable defense capabilities and protect Europe from future conflicts,” Marchenko was quoted by the finance ministry’s statement during his address to finance ministers from the G7 countries.
The risks to Europe from a potential defeat of Ukraine far exceed the risks of introducing the reparations mechanism.
Ukrainian, American, European teams to hold fresh talks in US today
Negotiators from Ukraine and its European allies will hold a new meeting with US officials in the United States on ending the Russian war, top Ukrainian negotiator Rustem Umerov said.
“Today, in the United States, together with Lt Gen Andriy Gnatov, we will begin another round of consultations with the American side. At the invitation of the American side, European partners are also involved in this format,” Umerov said on social media.
'Scariest thing for Russia is when we are together,' Zelenskyy tells Poland's Tusk
And back to our last agenda item for today, Poland’s Tusk has just met with Ukraine’s Zelenskyy in Warsaw, with a few words for the press.
(They literally also saw each other in Brussels yesterday.)
Welcoming his guest, Tusk repeated his earlier line that while he was satisfied with the EU deal agreed last night (13:14), “it could be better,” but added:
“Always something could be better, more efficient, but I am really satisfied (that) at least we delivered what we promised.”
Zelenskyy said in response that Russia was hoping to “cancel” the EU’s funding for Ukraine and “delay everything or even postpone meeting on this topic,” but Europe “showed leadership” as he welcomed the €90bn loan agreed last night.
Tusk also paid personal tribute to Zelenskyy, telling him that “your fight is our common fight,” and adding: “you are a hero not only in Ukraine, but here in Poland [we] also treat you as a hero.”
When Zelenskyy tried to play it down, Tusk added: “I know what I’m saying.”
In later comments in their own respective languages, Tusk repeated his comment from yesterday that Ukraine’s fight against Russia safeguards Poland’s independence which could otherwise come under threat if Russia was allowed to win the war.
Responding, Zelenskyy struck the same tone saying:
“The scariest thing for Russia is if we are together. Because they definitely cannot defeat the two of us.”
Updated
Look, I know that our Europe Live coverage can sometimes wander in mysterious directions, but I have to admit that I didn’t have
someone proposing during Putin’s live press conference (13:50) and
the Russian president discussing aliens (11:57) and
the feeling of being in love (15:03) as well as
De Wever’s ‘dacha in St Petersburg’ jibe (11:51) and
his cat’s public display of affection on Instagram
on my bingo card for today’s blog.
Belgium's de Wever greeted as hero by his cat on Instagram
in Brussels
Following the EU summit in Brussels where Belgium fought off a plan for a reparations loan, prime minister Bart De Wever is greeted as a hero by… his cat on Instagram.
Maximus is a popular Instagram account with tongue-in-cheek observations on life in the prime minister’s residence from the point of view of his cat.
The entry posted on Friday shows Maximus the cat congratulating the prime minister, telling him he is a hero.
De Wever thanks the cat and says he did his best. The joke is that the cat is thinking that flattering De Wever will earn him more food and petting.
The post does not reference the EU summit or Ukraine. But it is not too hard to guess that De Wever is pretty pleased with the outcome. The posts are put up by his team and reflect his deadpan humour.
After the summit ended last night, he used cats as a metaphor to explain why he saw the agreement as a good one.
”Ukraine has its money. Maybe not the way they wanted it. Maybe not the way they were pushing for…. You should not complain about the colour of the cat. If it can catch a mouse, it is fine.”
EU’s Ukraine loan may have been Plan B, but don’t underestimate its significance to the bloc
Europe correspondent
The EU’s failure to agree a “reparations loan” to Ukraine backed by frozen Russian assets was a political blow to the bloc’s big beasts, but the last-gasp alternative it devised will do the job – and marks a potentially significant first.
After a marathon 16 hours of talks, EU leaders early on Friday agreed to fund Ukraine, which risked running out of money by next April, with a much-needed €90bn (£79bn) loan. But the solution they came up with was not the one most had wanted.
More than two months ago, the European Commission floated a plan to provide a loan to Kyiv secured against some of the €210bn of Russian central bank assets frozen in Europe, most of which are held at the Euroclear clearing house in Belgium.
It looked neat, it was – EU lawyers argued – legally watertight, and appealed for two main reasons: it involved no new common borrowing, and there was a certain moral satisfaction in seeing Russian money help Ukraine fight off Russian aggression.
There was an obstacle, however. The Belgian prime minister, Bart De Wever, argued that Moscow, which saw the plan as theft, would retaliate, and that courts in Russia-friendly jurisdictions, such as China, could order Belgian assets to be seized.
For weeks, De Wever held out, resisting heavy pressure in particular from the commission chief, Ursula von der Leyen, and her compatriot Friedrich Merz, the German chancellor, for whom the “reparations loan” was Plan A, with no Plan B.
The alternative – joint borrowing – may have appealed to some southern EU countries but was strongly opposed by Berlin and its frugal northern European allies, who did not fancy underwriting more debt for already overburdened fellow member states.
Up until the start of Thursday’s EU summit, leaders and diplomats were convinced De Wever – whose popularity has soared at home – would cave. Instead, he demanded unlimited cash support from every EU member in the event of any Russian claim.
That was too much. And so, backed principally by Italy’s Giorgia Meloni but also increasingly by the French president, Emmanuel Macron, Plan B – using unallocated funds in the EU budget as collateral for a collective loan for Ukraine – won the day.
Objections that a eurobonds alternative required unanimity were overcome, in a historic and potentially far-reaching move, by securing the backing of Eurosceptic Hungary, Slovakia and the Czech Republic in exchange for exemption.
The result was first and foremost hugely important for Ukraine, which will also get its much-needed cash sooner than under Plan A. It was a political loss for von der Leyen and Merz – although the German chancellor expressed delight with the deal.
They can go home and boast to their populist bases that the taxpayers of, respectively, Hungary, the Czech Republic and Slovakia will not be asked to stump up anything for Ukraine’s defence.
Friday’s deal once again laid bare the deep divisions that so often hobble the EU’s decision-making, and underlined how far it still has to go to create a fully united Europe that can can act effectively and decisively in a hostile world.
But the bloc did manage to pull together an agreement for an existentially important end. It may even, analysts suggested, have found a new path forward. This was a “huge deal for EU”, said Guntram Wolff, of the Bruegel economic thinktank.
“If you want to do EU foreign policy, you need EU resources and debt. The European Council delivered,” he said, adding that the summit also marked, significantly, the first time that a decision on new EU debt had been reached without unanimity.
Highly choreographed Putin's presser repeats hardline tone on Ukraine
Russian affairs reporter
Vladimir Putin’s annual end-of-year press conference has ended, with the Russian president announcing little that was new despite the event stretching on for more than four hours.
The carefully choreographed event, a fixture of Russia’s political calendar, allows journalists and hand-picked members of the public to put questions directly to the president, projecting an image of openness while the agenda remains tightly controlled.
Putin struck his familiar hardline tone on the war in Ukraine, reiterating the Kremlin’s determination to continue fighting until all of its conditions are met. He offered few details on what those conditions might be, instead referring back to a speech he delivered in June of 2024, in which he demanded that Ukraine withdraw from the entirety of the Donetsk, Luhansk, Kherson and Zaporizhzhia regions – a non-starter for Kyiv and not a proposal currently under discussion with Washington.
As in recent months, Putin also used the appearance to court favour with Donald Trump, praising the US for a new security strategy that excludes Russia as a threat and agreeing with the US president’s decision to sue the BBC.
Domestically, the conference also serves as a pressure valve, with questions often touching on living standards and social benefits. But such concerns are typically reframed as temporary hardships on the road to victory.
When one questioner asked why food prices – “even buns in the cafeteria” – were rising while their parents’ wages were not, Putin responded by insisting inflation was already easing. “Prices are not just slowing,” he said. “They have fallen – I don’t recall the exact figure, but by more than 10%, almost 16%.”
True to tradition, the call-in show was also used by Kremlin political technologists to present a more human side of the Russian leader.
Asked whether he was collecting material for future memoirs, Putin replied that he was not, adding that his faith lay “in God, who is with us and who will never abandon Russia”.
Moments later, when asked whether he was in love, Putin smiled and said that he was.
Updated
Ukraine says it has attacked a Russian “shadow fleet” tanker with aerial drones 1,250 miles (2,000km) from its borders, in the first such strike in the Mediterranean Sea since Moscow’s full-scale invasion nearly four years ago.
Friday’s strike off the coast of Libya, which reportedly caused critical damage, took place on the day of Vladimir Putin’s annual end of year press conference.
It came amid an escalating maritime conflict over the shadow fleet, a term used to describe vessels used by Russia, Iran and Venezuela to evade sanctions with deceptive practices.
The reportedly critical drone strike is the first in the Mediterranean since the full-scale invasion began as maritime conflict grows. Read more here:
Updated
Czech president Petr Pavel said on Friday it was important that European Union leaders found agreement on financial help for Ukraine as it fights against Russia, calling it essential for Ukraine’s survival.
Pavel has urged the new Czech government led by prime minister Andrej Babiš to keep up support for Ukraine, although Babiš joined Slovakia and Hungary’s leaders on Friday in gaining an opt-out from the financial costs of the EU plan.
Updated
I’m still keeping an eye on Putin’s presser, but nothing particularly important to tell you about.
Although there was this guy who proposed to his girlfriend as part of his question, so there is always that.
Updated
Italy's Meloni, Denmark's Frederiksen welcome EU decision on Ukraine funds
Let’s bring you some more reactions from EU leaders to last night’s decision on Ukraine, via Reuters.
Italian prime minister Giorgia Meloni said that she was glad “that common sense prevailed,” and “we managed to secure the necessary resources with a solution that has a solid legal and financial basis.”
Striking a similar tone to Merz earlier (11:20), she added that “the most important decision on this matter was already taken a few days ago when we immobilized them, ensuring they would not be returned.”
Denmark’s Mette Frederiksen said it was “a good example that when something is necessary, then we are able to deliver.”
But she added:
“But at the same time we have to say that many governments and leaders are under a growing pressure in their national political discussions, parliaments and so on.
It is changing in Europe, unfortunately, and I have to say, this is what Putin is hoping for, the combination of some kind of war fatigue with a hybrid war that brings a lot of uncertainty and insecurity into our societies.”
Poland's Tusk says 'not fully satisfied' with Ukraine decision, but 'better to have something' than nothing
Sticking with Poland for a second, the country’s prime minister Donald Tusk said he wasn’t fully satisfied with last night’s decisions in Brussels, but it was still a move in the right direction as “it is always better to have a piece of something than all of nothing”.
In a social media post in English, he said:
“Despite excessive caution of some leaders, Europe took the decision to finance Ukraine. The possibility of using immobilized Russian assets is still on. Am I fully satisfied? Of course not. But it is always better to have a piece of something than all of nothing.”
Tusk, fresh back from Brussels, will also briefly meet Zelenskyy in Warsaw later today.
Russia is not going to attack Europe, Putin says
Meanwhile, Vladimir Putin is still speaking in Moscow, repeating his claims that Russia is not going to attack Europe.
He pointedly noted that the new US security strategy “does not mention Russia as a main threat,” somewhat blaming Nato for any tensions with Moscow.
He also claims that Russia is ready to stop the conflict “if we get security guarantees.”
Obviously the key part here is what they mean as security guarantees, because so far they were linked with extensive and maximalist demands on Ukraine, eastern Nato countries, and the alliance more broadly.
Separately, Putin also backed Trump’s legal challenge against the BBC.
Zelenskyy welcomes EU decision on funding as 'signal to Russians'
Zelenskyy also once again talks about the EU’s decision on funding, saying it was clearly helping Ukraine and sending “a signal to the Russians that there is no point in continuing the fight, because we are supported financially” and will be able to continue its resistance against Russia.
That ends the press conference in Warsaw.
Updated
Zelenskyy gets asked about Poland’s sense of being excluded from some of the recent talks on the Ukraine peace deal, and he explains the differences between various formats in which these talks are held, which sometimes change who is at the table – and says he doesn’t share the impression that Poland is being excluded.
He’s handled it well given it’s a very tricky and sensitive topic in Poland, and one that is at heart of Nawrocki’s continuing political disagreements with prime minister Tusk over who represents Poland where and in which format.
Zelenskyy also welcomes the EU deal on funding Ukraine, saying the funds will be used to help with its defence against Russia, and if the war ends, on Ukraine’s reconstruction.
He says it’s critical that Russian assets in Europe remain frozen, and Russia doesn’t get to benefit from its war of aggression.
He also invites Polish companies to participate in the reconstruction effort.
He also acknowledges some “difficult” episodes in Polish-Ukrainian history that Nawrocki talked about, and says Ukraine is ready to work through these issues together.
Updated
Zelenskyy says he thought the talks were positive, and stresses the importance of Poland and Ukraine in the region as two important elements of security system guaranteeing of freedom in this part of Europe “without Moscow.”
“Without our independence, Moscow will inevitably come for Poland. That’s why it’s important that we exist, it’s important that you exist, it’s very important that Ukraine and Poland exist, and it’s important that we stand together,” he said.
He says they also talked about the latest on the war and diplomatic efforts to end the war, pointedly thanking Poland and the Polish nation for its continued support “from the start of the war.”
He says Ukraine has lots to share with Poland drawing on its experience of the war with Russia, including security advice on how to deal with Russian drones after September’s large scale incursion into Polish airspace.
He says he also invited Nawrocki to visit Ukraine in return.
Updated
Poland’s Nawrocki then talks about various bilateral issues – including on history – and economy.
He also pointedly praises Trump, saying he is the only leader capable of making Putin move on Ukraine to achieve a peace settlement in the war.
Over to Zelenskyy now.
Updated
Nawrocki also says the two leaders share their views that Russia is a “neoimperial, post-Soviet” power that poses danger to the region.
But he then highlights the importance of Poland’s ongoing support for Ukraine, with past aid from Poland and 90% of the broader European aid for Ukraine coming through the country.
He says the two countries are fully aligned on strategic issues, but says that there is a sense that Poland’s support weren’t properly appreciated by Ukraine, and he raised this in his talks with Zelenskyy.
Updated
Zelenskyy, Poland's Nawrocki address media after Warsaw talks
Poland’s Nawrocki and Ukraine’s Zelenskyy are now speaking to the media.
Nawrocki says that Zelenskyy’s visit is “bad news for Moscow”, as shows the unity of thinking on security and defence between Warsaw, Kyiv and other partners in the region.
He makes it very clear what he thinks of Russia, as he says it seeks to “disrupt the international order” and destabilise political systems, with “hybrid” attacks taking place on an “almost daily basis.”
He reiterates Poland’s support for strict sanctions against Russia.
I will bring you more lines here.
Meanwhile, Putin was asked about the prospect of having more normalised relations with Nato.
He responded with his longstanding grievance about the alliance’s expansion eastwards in the last 30 years to cover larger parts of central and eastern Europe which he said happened despite Russia getting guarantees it would not and in practice “entailed moving military infrastructure closer to our border, which causes our legitimate concern.”
(No reflection on why these countries wanted to join Nato in the first place and if it perhaps had anything to do with the perceived threat from Russia.)
He once again says that ending the Ukraine war would require resolving “the root causes of the conflict,” which – as we know from his previous speeches – includes some far-reaching demands regarding Nato’s presence in this part of Europe.
Just a reminder that you can watch Putin’s press conference with English translation here:
Updated
Zelenskyy meets Poland's Nawrocki in Warsaw
By the way, we should also hear from Ukraine’s Zelenskyy at some point in the next hour or so.
He is in Poland, meeting with the country’s president Karol Nawrocki for talks this morning. The pair have a tricky relationship, with Nawrocki – while supportive of Ukraine’s war effort – occasionally deploying rather critical rhetoric about Ukraine and Ukrainians in Poland, both in his electoral campaign and in his time in the office.
Earlier this month, Nawrocki demanded that Zelenskyy show more gratitude for Poland’s support for Ukraine throughout the war, after the country welcomed millions of Ukrainian refugees and as it serves as the main logistics hub for Ukraine aid.
Let’s see what they say after today’s talks.
Putin says ball in west and Ukraine's court to move on ending war
After a number of domestic questions (including one on, erm, aliens), Putin is back talking about Ukraine.
He praises Trump’s “serious efforts to conclude this conflict,” and says the US president is “sincere” in his attempt to end the war.
He claims that Russia has been asked to make some compromises during the Anchorage talks with Trump and broadly agreed to them (it’s not entirely clear what is that he means here), so “saying that we reject anything or turn anything down is inappropriate and groundless.”
“The ball is entirely in the court of our western so-called opponents, the chief of the Kyiv regime, and … their European sponsors,” he says.
Updated
Belgium's de Wever hails 'stable, legally robust' solution on Ukraine funding as he shows frustration with pro-Russian accusations
Belgium’s Bart de Wever put out a fairly nuanced explanation of his thinking on frozen assets at his lengthy press conference last night.
In his opening comments, he said that “supporting Ukraine is not charity, it is the most important investment we can make in our own security.”
He stressed that “there was never any debate about whether we would help; the only real question was how we should help.”
De Wever added that “if Europe had walked away today with a without an agreement, we would not only have failed Ukraine, we would have failed ourselves.”
The Belgian prime minister insisted what was adopted was “a stable, legally robust and financially credible” solution, with Ukraine getting “urgent, predictable and reliable” financing it needed.
He added that the compromise solution “protected Europe’s economic and financial credibility,” and safeguarded “trust in European institutions, markets and the euro, and that is vital if we want Europe to remain competitive and able to finance future priorities.”
He explained:
“We avoided stepping into a precedent that risks undermining legal certainty worldwide. We safeguarded the principle that Europe respects law even when it is hard, even when we are under pressure, and we delivered a strong political signal that Europe stands behind Ukraine, Europe remains united, Europe acts responsibly, and Europe still matters. I am proud that we have been able to contribute to this outcome by being constructive, firm and responsible.”
But in a bizarre exchange with a Politico reporter later in the briefing, de Wever could not hide his frustration with the outlet’s characterisation of Belgium in the build up to the summit as Russia’s “most valuable asset” (ouch).
Inviting a Politico reporter to ask his question, he joked that as a politician he had to let go of his emotions “even if these emotions are pure anger, vengeance and maybe even violence.”
He begun by stressing that at the end of the day, the decision was “unanimous,” so there was no unusual divisions between the EU countries.
He added:
“There’s always (some) division at the European table. This is Europe, 27 countries, different interests, different public opinions, close to Russia, far from Russia. We’re not all playing in the same ballgame, but at the end of the day, there is a decision with unanimous support, so what’s your problem?
We found a solution for the financing of Ukraine, and we were unanimous. Three countries didn’t want to be implicated, okay, fine, but we’re there.”
And that’s where the presser took a slightly bizarre turn, as he joked:
“But now I have to go to my dacha in St Petersburg, where my neighbour is Depardieu, and then across the street there is Assad. And I think I can become mayor of that little, little village, maybe that could be your [headline],” he snarked, prompting some laughter in the room.
Walking out the room, he felt the need to clarify “that was a joke; if you write this, you must add ‘laughter’”.
You can kind of see where it came from though: a very humane, if unusual and awkward, moment after a particularly difficult and tense summit, revealing the immense human toll of these negotiations and the pressure he found himself under (from all directions).
Updated
It’s only fair to say that the European response to that – as put forward by Germany’s Merz at his press conference in the middle of the night – would be to note that as a result of last week’s decision in the build up to the summit, the Russian assets have now been permanently frozen.
That changes the dynamic compared to the previous system of rolling decisions every six months, always fraught with risk of last minute block from Hungary or someone else.
As a result, they can be more sustainably used to fund or guarantee funds for Ukraine going forward – it’s just that the order of doing things is different now.
So, in Merz’s words, “that stays on the table.”
(He’s also getting some domestic criticism from his political rivals, the far-right Alternative für Deutschland, as they frame the agreed solution as simply taking on more debt.)
Updated
Looking at that last Putin line on “robbery,” that’s exactly what I meant earlier (10:46).
Rightly or wrongly, Putin will see the EU’s decision to move away from the reparations loan backed by frozen Russian assets as a win for his campaign of intimidation.
Just think of all these Kremlin warnings about “severe consequences” for Belgium specifically and the EU more broadly – they clearly seem to have influenced the thinking of some EU countries when coming to the summit.
Updated
Putin calls EU reparations loan idea 'robbery' and warns about consequences
Oh, Russia’s Putin has now offered his take on the idea of using frozen Russian assets, calling it a “robbery” and saying the leaders failed to agree fearing that “the consequences could be really harsh for the robbers.”
He said the move, if passed, would have undermined the confidence in the eurozone, with worrying precedent that could be abused in the future against other countries or groups.
“No matter what they steal, sooner or later, they will have to give it back, and most importantly, we will go to court to protect our interests. We will do our utmost to find a jurisdiction that will be independent from the political context,” he warned.
EU summit secures money for Ukraine, but politically its outcome is more complicated - snap analysis
If you only read the headline, you would think that the outcome of this council is exactly as expected. Ukraine gets its 2026 funding, Zelenskyy is relieved after his warnings about financial difficulties, and Europe shows its continued backing for Kyiv.
Well, the reality is somewhat more complex.
Behind the scenes, this was not a victory lap, but more of a last minute fix to save the day.
For days, most senior EU figures like commission president Ursula von der Leyen and key leaders like German chancellor Friedrich Merz insisted in strong words that the use of frozen Russian assets was the best – morally and financially – option for funding Ukraine. In the process of doing that, they actively played down the alternatives (including the very one they ended up agreeing on!).
But during the summit, faced with multi-faceted opposition from various partners, their original view did not hold.
In the end, Belgium’s determined opposition to the proposal amid pressure from Russia and the central European Awkward Three’s clever use of their veto threat forced the leaders to change their tactic and settle for what had been a less preferred option.
Financially, the outcome is essentially the same, and Ukraine gets the money it so needed to continue defending itself from Russia’s aggression.
Zelenskyy – after a pretty dramatic warning yesterday that any shortfall would directly impact Ukraine’s ability to fight the war – will be relieved to see the money confirmed in black and white. In that sense, the fix does the job.
But politically, it does not quite send the defiant, determined and united signal the EU so much wanted to send when proposing to use frozen Russian assets in the first place, with the strong message about the aggressor having to pay for its war.
Instead, critics will not unreasonably say that we have once again seen the reality of bitter divisions between the countries – even in the face of actual war – and that Russia’s active campaign of putting pressure on Belgium and other countries to block the EU’s proposal effectively allowed Moscow to fend off the proposal it did not like.
Both of these could be worrying signs for the future.
But, as is so often the case with the EU: for now, we live to fight another day.
In this case, quite literally.
Updated
Asked about Zelenskyy’s recent social media clip recorded on a visit to Kupyansk, Putin dismisses it by saying he’s not surprised “he’s an actor and a talented one to boot,” but notes that the monument where it was recorded is “one kilometre or so from the city.”
“Well, if the city is under their control, why do not come into the city itself?” he taunts him.
Unsurprisingly, Putin also says that “our forces are advancing along the whole line of conflict,” a claim contested by Ukraine.
Putin blames Ukraine for continuing war
In his first comments on Ukraine, Putin swiftly blames Kyiv for the continuing war, saying “they are basically refusing to finish this conflict via peaceful means” (whatever that means from the literally invading party).
But he says there are “some signals … indicating they are willing to engage in some type of dialogue.”
He says Russia would be willing to “put an end to this conflict via peaceful means,” but only “based on the principles I outlined … last year” that would see “the root causes that brought about this conflict … addressed.”
These principles were dismissed at the time as maximalist and unrealistic, essentially demanding humiliating concessions from Ukraine.
Updated
Russia's Putin begins annual year-end news conference
Meanwhile, Russia’s Vladimir Putin is now beginning his annual year-end news conference, so expect him to weigh in on the EU’s decision from last night and on the war in Ukraine and European security more broadly.
You can watch it below:
Hungary's Orbán calls EU loan for Ukraine 'extremely bad decision' and 'lost money'
Babiš’s partner in the opt-out three, Hungary’s Viktor Orbán, made it clear overnight that he wasn’t a fan of the agreed solution, and didn’t want his country to have anything to do with it.
Leaving the summit, he said “Hungary is totally out of that.”
“I think it’s a bad decision. All the others, except the Czechs and Slovaks, think that it was a good decision. I think it was an extremely bad decision, which brings Europe closer to the war.”
He continued:
“It looks like a loan, but of course, the Ukrainians will never be able to pay it back, so it’s basically lost money, and those who are behind that loan will take the responsibility and the financial consequences of that.
[The] three countries decided not to be part of it, that’s an opt out for Czech Republic, Slovakia and Hungary. So we are innocent.”
Ukraine loan turned out 'exactly as I promised,' Czech Republic's Babiš says
New Czech prime minister Andrej Babiš is also very pleased with the outcome of the summit, particularly with the Ukraine loan, which he says has turned out “exactly as I promised”: politically supported, but not financially guaranteed by the Czech Republic.
The country is one of the three – alongside Hungary and Slovakia – that backed the idea, but refused to provide guarantees.
Here is how it reads in the actual summit document:
“By means of enhanced cooperation (Article 20 TEU) in respect of the instrument based on Article 212 TFEU, any mobilisation of resources of the Union’s budget as a guarantee for this loan will not have an impact on the financial obligations of the Czech Republic, Hungary and Slovakia.”
Updated
Spain's Sánchez backs EU decision on loan as right politically, legally and morally
in Madrid
Speaking to the press early this morning, Spain’s prime minister, Pedro Sánchez described the EU’s €90bn loan to Ukraine as the right course of action politically, legally and morally.
“As I told President Zelenskyy in a bilateral meeting earlier, the European Union has to support the Ukraine financially, but it has to do so for moral reasons and in the interest of justice – but also because it’s legal,” he said. “This decision is backed by international law.”
It’s Jakub Krupa here, picking up the blog to bring you the latest reaction from Europe and Ukraine to the overnight deal in Brussels.
Good morning.
French president Emmanuel Macron has hailed the deal as a major advance, saying that borrowing on capital markets “was the most realistic and practical way” to fund Ukraine and its war efforts.
Associated Press reports that the German chancellor, Friedrich Merz, also hailed the decision.
“The financial package for Ukraine has been finalised,” Merz said in a statement, noting that “Ukraine is granted a zero-interest loan.”
“These funds are sufficient to cover the military and budgetary needs of Ukraine for the two years to come,” Merz added. He said the frozen assets will remain blocked until Russia has paid war reparations to Ukraine. Volodymyr Zelenskyy has said that would cost over €600bn.
“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,” Merz said.
Hungarian prime minister Viktor Orbán agreed not to block the huge EU-backed loan to Ukraine as long as his country, Slovakia and the Czech Republic were excluded from the guarantees for the debt.
The deal will not affect the financial obligations of those three countries, which did not want to contribute to the financing of Ukraine, a text on the EU agreement said.
Moscow-friendly Hungary had previously said it would oppose the deal, just as it opposed the use of frozen Russian assets.
The deal followed hours of discussions among leaders on the technical details of a loan based on frozen Russian assets, which turned out to be too complex or politically demanding to sort out at this stage, diplomats said.
“We have gone from saving Ukraine to saving face, at least that of those who have been pushing for the use of the frozen assets,” one said.
You can read more on the deal as well as other developments in the Ukraine war – including Russian strikes near the Black Sea port of Odesa – in our daily briefing here:
Updated
The EU agreement to provide Kyiv with an €90bn interest-free loan will cover most of Ukraine’s urgent financial needs but be secured against EU borrowing rather than frozen Russian assets.
As Jennifer Rankin reports from Brussels, after the summit talks ended in the early hours of Friday, the European Council president, António Costa, told reporters: “We committed and we delivered.”
He said EU leaders had approved a decision to make the €90bn (£92bn/$105bn) loan to Ukraine for the next two years backed by the EU budget, which Kyiv would repay only once Russia paid reparations.
Costa added: “The union reserves its right to make use of the immobilised assets to repay this loan.”
EU leaders entered the summit on Thursday with many wanting to secure the urgently needed loan against some of Russia’s €210bn frozen assets on the continent. But the plan fell over on the demand of Belgium, which hosts 88% of the Russian funds in the EU, to have unlimited budget guarantees from other member states if Moscow won a successful claim for damages.
Belgium’s prime minister, Bart De Wever, said the reparations loan was not a good idea and had a lot of loose ends. “And if you start pulling at the loose ends in the strings, the thing collapses.”
You can read the full report here:
Updated
Opening summary
Welcome to our live coverage of the latest developments in the Ukraine war.
Volodymyr Zelenskyy has said he is grateful to European Union leaders after they agreed on a plan to provide Ukraine a €90bn ($105bn) loan to cover its looming budget shortfalls.
“This is significant support that truly strengthens our resilience,” the Ukrainian president said in a post on X on Friday.
The EU leaders’ agreement came at summit talks in Brussels, but they failed to agree on using frozen Russian assets to make up the loan funds.
Zelenskyy said: “It is important that Russian assets remain immobilised and that Ukraine has received a financial security guarantee for the coming years. Thank you for the result and for unity. Together, we are defending the future of our continent.”
The agreement came after EU leaders settled on granting an interest-free loan for the next two years backed by the bloc’s common budget, providing Kyiv a lifeline as Donald Trump pushes for a quick deal to end Russia’s near-four-year war in Ukraine.
“Today’s decision will provide Ukraine with the necessary means to defend itself and to support the Ukrainian people,” said European Council head Antonio Costa, who chaired the summit.
Meanwhile, US and Russian representatives are set to hold fresh talks on Ukraine in Miami at the weekend as Trump urged Kyiv to move “quickly” on reaching a peace deal.
In key developments:
The leading option at the EU summit had been to tap about €200bn of Russian central bank assets frozen in the EU to generate a loan for Kyiv but that fell through after Belgium – where the bulk of the assets are held – demanded guarantees on sharing liability that proved too much for other countries. Belgian prime minister Bart De Wever said as the summit wrapped up that he believed “rationality has prevailed”.
German chancellor Friedrich Merz had pushed hard for using Russia’s frozen assets but still said the final decision on the EU-backed loan “sends a clear signal” to Vladimir Putin. European Commission president Ursula von der Leyen said Ukraine would need to repay the loan only once Moscow paid for the damages it has caused.
Hungary’s prime minister, Viktor Orbán, agreed not to block the loan to Ukraine to meet its military and economic needs for the next two years as long as his country, Slovakia and the Czech Republic were excluded from the guarantees for the debt. The deal would not affect the financial obligations of those three countries, which did not want to contribute to the financing of Ukraine, a text on the agreement said.
Zelenskyy had urged EU leaders at the start of the summit to use the frozen Russian assets, saying: “It’s moral, it’s fair, it’s legal.” The EU estimates Ukraine needs an extra €135bn to stay afloat over the next two years.
In Washington, Donald Trump urged Ukraine to move swiftly on a peace deal ahead of fresh talks expected in Miami this weekend. The US president told reporters in the Oval Office: “Well, they’re getting close to something, but I hope Ukraine moves quickly. I hope Ukraine moves quickly because Russia is there. And you know, every time they take too much time, then Russia changes their mind.” Trump envoys Steve Witkoff and Jared Kushner plan to meet Russian officials in Florida, a White House official said, after the envoys held talks with a Ukrainian delegation in Berlin last Sunday and Monday.
With agencies
Updated
