German chancellor says $105B EU loan to Ukraine sends ‘clear signal’ to Russia

ISTANBUL

German Chancellor Friedrich Merz said Friday that a €90 billion ($105 billion) EU financial package for Ukraine is now in place, calling it a strong political message to Moscow as the bloc continues to debate the future use of frozen Russian assets.

“The financial package for Ukraine is in place: Ukraine will receive an interest-free loan of 90 billion Euros as I suggested,” Merz said on US social media company X.

“This sends a clear signal from Europe to Putin: This war will not be worth it. We will keep Russian assets frozen until Russia has compensated Ukraine.”

Merz’s remarks came after EU leaders agreed at the European Council, following weeks of intense negotiations, to finance Ukraine through borrowing on capital markets for 2026 and 2027.

The agreement was reached after member states failed to reach a consensus on directly using frozen Russian assets to support Kyiv, said EU Commission President Ursula von der Leyen.

ISTANBUL

“The financial package for Ukraine is in place: Ukraine will receive an interest-free loan of 90 billion Euros as I suggested,” Merz said on US social media company X.

“This sends a clear signal from Europe to Putin: This war will not be worth it. We will keep Russian assets frozen until Russia has compensated Ukraine.”

Merz’s remarks came after EU leaders agreed at the European Council, following weeks of intense negotiations, to finance Ukraine through borrowing on capital markets for 2026 and 2027.

The agreement was reached after member states failed to reach a consensus on directly using frozen Russian assets to support Kyiv, said EU Commission President Ursula von der Leyen.