Good News, Bad News on Ukraine: Loan Finalized, but Western Strategy Still Faltering

Dec 19

European leaders have agreed to provide Ukraine with a major financial lifeline—but once again failed to take the strategic steps necessary to shift the course of the war.

The European Union has committed €90 billion (approximately $105 billion) in loans to help Ukraine sustain its defense against Russia’s ongoing invasion. The agreement comes at a critical moment, as Kyiv faces continued battlefield pressure, budget shortfalls, and uncertainty about long-term Western support.

While the loan provides short-term stability, it also exposes deeper failures in Western strategy toward confronting Russia.

What the Loan Agreement Includes

European leaders agreed to:

Provide €90 billion in loans to support Ukraine’s government operations and war effort
Finance the package through EU borrowing, rather than direct transfers
Frame the support as a financial bridge rather than a decisive long-term solution

The commitment reflects continued European backing—but not a strategic escalation.

What Europe Failed to Agree On

The most consequential aspect of the agreement lies in what was excluded.

EU leaders failed to agree on using frozen Russian sovereign assets to support the loan
Tens of billions of euros in Russian state funds remain immobilized in European financial institutions
Legal concerns, political caution, and internal EU divisions once again blocked decisive action

As a result, Ukraine is forced to borrow to defend itself, while Russian state assets linked to the aggressor remain untouched.

A Piecemeal Strategy with Predictable Results

This outcome reflects a broader pattern in Western support for Ukraine:

Assistance arrives incrementally and reactively
Decisions are delayed by internal political disagreements
Support is calibrated to avoid escalation rather than secure victory

This approach has failed to deter Russia. Moscow continues its war of attrition, adapting to sanctions and betting that Western resolve will weaken over time.

Failure to Deter Russia

Despite years of sanctions and aid packages:

Russia continues its invasion without meaningful strategic restraint
Western hesitation sends a signal of caution rather than resolve
Authoritarian regimes worldwide are watching closely

The refusal to use frozen Russian assets is not merely a legal debate—it is a geopolitical signal.

The Path Forward Is Clear

The road to Ukrainian victory is not ambiguous. It requires:

Predictable, long-term financing that does not saddle Ukraine with unsustainable debt
Faster and more decisive military assistance
A willingness by Europe and the United States to use all available economic and legal tools, including Russian sovereign assets

What is missing is not capacity—but political will.

Conclusion

The €90 billion loan is necessary. It is also insufficient.

By choosing caution over strategy once again, Europe—and the United States—risk prolonging the war rather than ending it. Managing the conflict is no longer enough. If Ukraine is to win, Western leaders must decide to pursue victory, not merely stability.