The EU is borrowing €90 billion for Ukraine, and Macron is laying the groundwork for talks with Putin

French President Emmanuel Macron said Europe may need to resume direct contacts with Russian President Vladimir Putin if the current talks do not lead to a “durable peace” in Ukraine. In that case, he said, Europeans would have to find a format for dialogue “under conditions of transparency” and “together with Ukraine.”

The statement came after an EU summit in Brussels, where EU leaders agreed to provide Ukraine with a €90 billion interest-free loan for 2026–2027 to cover military and economic needs. Instead of directly using frozen Russian assets, the EU opted for joint borrowing backed by the Union’s budget guarantees.

The decision was made against the backdrop of intensified peace efforts by U.S. President Donald Trump’s administration. His proposal, which has raised concern in Europe, envisages Ukrainian concessions on Donbas and limits on the size of Ukraine’s armed forces in exchange for U.S. security guarantees.

Ukrainian President Volodymyr Zelensky warned at the summit that without the loan the country could face an external aid shortfall of $45–59 billion in 2026, and stressed the need to receive the first tranche by spring—otherwise Ukraine risks falling behind Russia in drone production and reducing its long-range strike capabilities.

Under the agreed scheme, Ukraine would repay the loan after Russia pays reparations. If Moscow refuses, the EU reserves the right to use around €185 billion in frozen Russian assets—held mostly at the Belgian depository Euroclear—to cover the obligations. German Chancellor Friedrich Merz called the mechanism a “signal to Putin” that the war “will not pay off,” while EU foreign policy chief Kaja Kallas said the Russian president is “counting on the failure” of European support.