Buying Time for Kyiv: The EU’s Ukraine Loan and the Path to Peace in Ukraine

by Barbara Listek

In this paper, we discuss:

• The EU’s €90bn interest-free loan to Ukraine, designed to buy time by covering most of Kyiv’s near-term funding needs;
• Divisions within the EU, as support for Ukraine clashes with legal, political, and financial constraints;
• The decision not to use frozen Russian assets, underscoring fears over litigation and market credibility;
• Russia’s rejection of the plan and the uncertain outlook for the US–Ukraine peace initiative.

Download PDF: Ukraine Loan December 2025