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BRUSSELS (AP) \u2014 European Union leaders agreed on Friday to provide a massive interest-free loan to Ukraine to meet its military and economic needs for the next two years, EU Council President Antonio Costa said, but they failed to agree to use frozen Russian assets<\/a> to raise the funds.<\/p>\n \u201cWe have a deal. Decision to provide 90 billion euros ($106 billion) of support to Ukraine for 2026-27 approved. We committed, we delivered,\u201d Costa said in a post on social media. The money would be borrowed by the EU on capital markets and underwritten by the 27-nation bloc’s seven year budget.<\/p>\n French President Emmanuel Macron described the deal agreed as a major advance, saying this option \u201cwas the most realistic and practical way\u201d to fund Ukraine and its war efforts. He added that the deal included a mechanism to protect three countries \u2014 Hungary, Slovakia and the Czech Republic \u2014 from any financial fallout.<\/p>\n German Chancellor Friedrich Merz also hailed the decision, which came after EU leaders worked deep into Thursday night to reassure Belgium that they would provide guarantees to protect it from Russian retaliation if it backed the loan for Ukraine<\/a>.<\/p>\n \u201cThe financial package for Ukraine has been finalized,\u201d Merz said in a statement, noting that \u201cUkraine is granted a zero-interest loan.”<\/p>\n \u201cThese funds are sufficient to cover the military and budgetary needs of Ukraine for the two years to come,\u201d Merz added. He said the frozen assets will remain blocked until Russia has paid war reparations to Ukraine. Ukrainian President Volodymyr Zelenskyy has said that would cost over 600 billion euros ($700 billion).<\/p>\n \u201cIf Russia does not pay reparations we will \u2014 in full accordance with international law \u2014 make use of Russian immobilized assets for paying back the loan,\u201d Merz said.<\/p>\n Zelenskyy had appealed for a quick decision to keep Ukraine afloat in the new year. The International Monetary Fund estimates that Ukraine will need 137 billion euros ($161 billion) in 2026 and 2027. The government in Kyiv is on the verge of bankruptcy, and desperately needs the money by early next year.<\/p>\n Polish Prime Minister Donald Tusk warned early on Thursday that it would be a case of sending \u201ceither money today or blood tomorrow\u201d to help Ukraine.<\/p>\n Some 210 billion euros ($246 billion) worth of Russian assets are frozen in Europe, most of them in the Belgian financial clearing house Euroclear. Belgium had objected to the loan plan, calling it legally risky and warning that it could harm Euroclear’s business.<\/p>\n Belgium was rattled last Friday when Russia\u2019s Central Bank launched a lawsuit against Euroclear<\/a> to prevent any loan being provided to Ukraine with frozen Russian funds.<\/p>\n But Costa said: “The union reserves its right to make use of the immobilized assets to repay this loan.\u201d<\/p>\n<\/div>\n