Chancellor Rachel Reeves has welcomed a major European Union agreement to provide Ukraine with a substantial new financial lifeline, while reiterating the United Kingdom's unwavering commitment to Kyiv's defence.
EU Secures Landmark Financial Package
The European Council, following talks that stretched late into Thursday night, finalised a deal to grant Ukraine an interest-free loan worth 90 billion euros (£78.8 billion). This significant sum is intended to bolster both Ukraine's military capabilities and its economic stability over the coming two years as it continues to resist Russian aggression.
Reacting to the news, Chancellor Reeves stated she was "pleased" an agreement had been reached. "The UK's support for Ukraine remains iron-clad," she affirmed. "We will work with partners to urgently consider options to ensure that Ukraine gets the funding it needs." Her comments underscore the UK's continued diplomatic and financial alignment with European allies on this critical issue.
Debate Over Russian Assets Continues
Despite the breakthrough on the loan itself, the summit on Thursday 19 December 2025 could not reach a consensus on a more contentious proposal: using frozen Russian state assets to directly pay for the aid. A substantial portion of these immobilised funds is held by the Belgium-based financial institution Euroclear.
Belgian Prime Minister Bart De Wever had expressed reservations, citing concerns over potential legal repercussions and Russian retaliation. After extensive negotiations to address Belgium's security fears, EU leaders ultimately decided to raise the capital from financial markets instead of underwriting the loan with the seized Russian funds.
Mr De Wever characterised the final arrangement as avoiding "a precedent that risks undermining legal certainty worldwide," while still sending a "strong political signal" of European solidarity. However, the door remains open for future action, with European Council president Antonio Costa noting the EU "reserves its right to make use of the immobilised assets to repay this loan."
Zelensky's Welcome and UK's Parallel Efforts
Ukrainian President Volodymyr Zelensky swiftly praised the EU's decision, declaring that the financial package will "truly strengthen our resilience" during a prolonged and costly conflict.
Concurrently, the UK government is pursuing its own channels to direct funds towards Ukraine. Ministers continue to pressure sanctioned Russian oligarch Roman Abramovich to transfer £2.5 billion from the 2022 sale of Chelsea Football Club to a foundation for Ukrainian humanitarian causes. While the funds remain frozen, the government granted a licence on Wednesday to facilitate the transfer, honouring a commitment made at the time of the club's sale.
This dual-track approach—supporting collective European action while advancing independent UK measures—highlights the multifaceted strategy being employed to sustain Ukraine in its fight for sovereignty.
