World
EU plans to raise €90 billion in joint debt for Ukraine — here’s how
Reparations loan is out, joint debt is in. That is the agreement that the 27 leaders of the European Union reached at their make-or-break summit this week.
With the reparations loan ruled out for good, the bloc turns to common borrowing to raise €90 billion to meet Ukraine’s budgetary and military needs for the next two years.
It is a simpler, faster and more predictable solution compared to the high-risk scheme of using the immbolised Russian assets. But joint debt is expensive, and immediately so.
Here’s what you need to know about the plan.
Back to the markets
Since neither the EU nor its member states have €90 billion at their disposal at the moment, the European Commission will go to the markets and raise the money from scratch by issuing a mix of short-term and long-term bonds.
The €90 billion will be gradually dolled out to ensure a steady flow of assistance to Ukraine, which needs a fresh tranche as early as April. The country will be able to use the funds for both military and budgetary purposes for greater flexibility.
In the meantime, the EU budget will absorb the interest rates to spare Ukraine, already heavily indebted, from any additional burden. The Commission estimates that, under current rates, the interest payments will amount to €3 billion per year. This means the next EU budget (2028-2034) will have to make space for about €20 billion.
Member states will share the interest according to their economic weight. Germany, France, Italy, Spain and Poland will carry the highest costs.
According to Commission officials, the €90 billion will not count towards domestic levels of debt because the issuance will be done exclusively at the EU level.
Forever roll-over
Under a non-recourse loan agreement, Ukraine will be asked to pay back the €90 billion only after Russia ceases its war of aggression and agrees to pay war reparations.
Given that Moscow has emphatically ruled out the possibility of any compensation, the Commission is already prepared to roll out the liability over time so that Ukraine does not have to pay out of pocket, which will be painful after suffering so much devastation.
“The assumption is, today it’s a non-recourse loan to Ukraine that is only paid back when reparations are there, and therefore this debt is going to be rolled over up until then,” a senior Commission official explained.
But will the roll-over continue for eternity?
That seems unlikely. At some point in the future, the EU will have to settle the fate of the €90 billion to stop paying interest rates. The go-to method will be the EU budget, which will act as the ultimate guarantor to ensure investors are always paid back.
The three opt-outs
The reason why joint debt for Ukraine is now possible is that, as first reported by Euronews during the summit, Hungary, Slovakia and the Czech Republic agreed to refrain from vetoing in exchange for being exempted.
This is key because under current rules, the EU budget cannot be used to raise money for a non-EU country. Any changes to that effect will require unanimous approval.
Hungary, Slovakia and the Czech Republic will commit to that unanimity. In return, the bloc will activate the so-called “enhanced cooperation” mechanism to spare them from any costs and responsibilities associated with the €90 billion.
The other 24 countries will take over their share of the interest. But the change will be minimal because the three opt-outs only amount to 3.64% of the bloc’s GNI.
The exemption will also be institutional. Once the budget rules are amended and the “enhanced cooperation” is triggered, the three countries will lose their voting rights to approve the regulation that will establish the new assistance programme.
In practice, they will be strictly removed from the initiative.
Strings attached
The Commission intends to recycle the now-discarded proposal of the reparations loan to set up the €90 billion common borrowing.
As a result, Ukraine will be subject to the same conditions to receive the funds.
One of them is a “no rollback” clause that will link the aid to the anti-corruption measures that Kyiv must implement to advance in its EU accession bid. The country was recently shaken by a corruption scandal in the energy sector that precipitated numerous resignations, including that of Andriy Yermak, President Zelenskyy’s chief of staff.
If Kyiv takes a step back on the fight against corruption, as it briefly did in the summer when it undermined the independence of two anti-corruption agencies and prompted widespread protests, payments will be suspended.
There will also be safeguards to strengthen oversight on how Ukraine allocates defence contracts, which have been a source of controversy in the past.
Additionally, there will be “Made In Europe” criteria to ensure the €90 billion fosters Ukraine’s and Europe’s domestic defence industries. Only when the equipment is not readily available on the continent will purchases outside Europe be allowed.
Assets still on the table
Resorting to joint debt means the cash balances from the Russian assets will not be touched, as was originally planned in the reparations loan.
However, in their conclusions, EU leaders say they reserve “the right” to tap the assets, or at least try, sometime in the future, as a way to repay the €90 billion borrowing.
“For me, it’s very difficult and very premature today to say how this will be translated in actual terms,” a senior Commission official said when asked about the meaning.
“I think the message is pretty political, which is to say that the option to use the cash balance assets of the Russian Central Bank is not off the table.”
The addition of the assets into the final wording is considered a way to placate those countries that were most vocally supportive of the reparations loan, particularly Germany, and had publicly ruled out the idea of common borrowing.
President Zelenskyy hailed the decision as an “important victory” for his country.
“Without these funds, it would be very difficult for us. In any case, this is tied to Russian reparations,” he said. “For us, this is a reinforcement. It is a signal to the Russians that there is no point for them to continue the war because we have financial support, and therefore, we will not collapse on the front line. We will support our army and our people.”
World
Video: Zelensky Calls Peace Plan ‘Quite Solid,’ Russia Then Launches Missiles
new video loaded: Zelensky Calls Peace Plan ‘Quite Solid,’ Russia Then Launches Missiles
By Jamie Leventhal
December 23, 2025
World
Ukraine, US near 20-point peace deal as Putin spurns Zelenskyy Christmas ceasefire offer
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Ukrainian President Volodymyr Zelenskyy said Ukraine and the United States are close to finalizing a framework of security guarantees and economic arrangements tied to a proposed peace plan, while Russia has signaled it will seek significant changes before any agreement to end the war.
Speaking at a press conference in Kyiv on Dec. 22, Zelenskyy said talks with U.S. officials had produced a 20-point plan and accompanying documents that include security guarantees involving Ukraine, the United States and European partners. He acknowledged the framework was not flawless but described it as a tangible step forward.
“There are 20 points of the plan, probably not everything is perfect there, but this plan is there,” Zelenskyy said. “There are security guarantees between us, the Europeans and the United States of America, there is a framework document.”
US OFFICIALS TOUT PROGRESS IN TALKS TO REACH ‘LASTING AND DURABLE PEACE’ BETWEEN UKRAINE, RUSSIA
President Donald Trump meets with Ukrainian President Volodymyr Zelenskiy during the 80th United Nations General Assembly, in New York City, Sept. 23, 2025. (Al Drago/Reuters)
Zelenskyy said a separate bilateral document with Washington covering security guarantees is intended to be reviewed by the U.S. Congress, adding that key annexes critical to Ukraine’s military needs were largely agreed to.
“I saw the first developments, there are almost 90%, to be honest, exactly those attachments that are important for us, what our army and Ukraine can count on,” he said, describing the draft as “quite decent.”
A Christmas tree remains in a living room damaged by a Russian drone strike in Zaporizhzhia, Ukraine, on Dec. 16, 2025. Russian troops attacked a nine-story apartment building with a drone, starting a fire in several flats and injuring three people. (Dmytro Smolienko/Ukrinform/NurPhoto via Getty Images)
He also said a first version of an agreement on Ukraine’s recovery had been prepared, calling it an economic strategy that, together with the security documents, forms “the basic block of all documents.”
Zelenskyy warned, however, that diplomacy has not reduced the immediate military threat from Russia. He criticized Moscow for rejecting proposals for a Christmas ceasefire, calling it a “bad signal,” and warned of potential attacks during the holiday period.
MOMENTUM BUILDS IN UKRAINE PEACE PUSH, BUT EXPERTS FEAR PUTIN WON’T BUDGE
Ukrainian servicemen fire a self-propelled howitzer toward Russian positions at the frontline in the Zaporizhzhia region, Ukraine, Aug. 20, 2025. (Danylo Antoniuk/AP Photo)
“When Russia says there will be no Christmas ceasefire, I think that this is, in principle, always what they say, they emphasize intimidation,” Zelenskyy said. He added that Ukraine faces an air-defense shortfall and urged civilians to remain vigilant.
Reuters also reported that Zelenskyy confirmed Russian forces captured a border village in Ukraine’s Sumy region, taking dozens of civilians and 13 Ukrainian soldiers prisoner. He said Ukrainian troops refrained from striking Russian forces because civilians were present. Reuters noted it could not independently verify the account and that Russia had not commented.
On the Russian side, the Kremlin said President Vladimir Putin has been briefed on the U.S. peace proposals, with Moscow expected to formulate its position in the coming days, according to Reuters and Anadolu Agency.
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President Donald Trump shakes the hand of Russian President Vladimir Putin during a joint press conference at Joint Base Elmendorf-Richardson, Alaska, Aug. 15, 2025. (AP Photo/Jae C. Hong, File)
Bloomberg News reported that Russia views the 20-point plan agreed to between Ukraine and the U.S. as only a starting point. According to a person close to the Kremlin, Moscow intends to seek key changes, including additional restrictions on Ukraine’s military, arguing that the proposal lacks provisions important to Russia and leaves many questions unanswered.
The emerging positions underline a widening gap between Kyiv’s portrayal of progress toward security guarantees and Moscow’s insistence on renegotiating core elements of the U.S.-backed plan as diplomacy continues.
Reuters contributed to this report.
World
Libyan army chief killed in plane crash: What next?
The Libyan army’s Chief of Staff, Lieutenant General Mohammed Ali Ahmed al-Haddad, has been killed in a plane crash in Turkiye while returning from an official visit to Ankara.
Turkish officials said the private aircraft, which was heading back to Tripoli on Tuesday, requested an emergency landing due to an electrical failure just minutes after takeoff, but then lost contact.
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The crash, which also killed four senior Libyan military officials and three crew members, has sent shockwaves across Libya, where General al-Haddad was seen as a unifying figure amid deep political divisions. The Libyan government has announced three days of national mourning.
Here is what we know so far:
Who was Mohammed Ali Ahmed al-Haddad?
General al-Haddad was Libya’s chief of the General Staff, the highest-ranking military officer in the country’s armed forces.
General al-Haddad worked within the United Nations-recognised Government of National Unity (GNU) in Tripoli to bring together competing armed factions.
Al Jazeera’s Malik Traina said people in Libya were mourning al-Haddad, whom he said was a key figure in efforts to unify the country’s fractured military. “He really was someone who tried to build up the military institutions, especially in western Libya, a place that is divided with powerful armed groups and militias controlling vast areas of land,” Traina, reporting from Tripoli, said.
“You have powerful armed groups, militias controlling different parts of land. They hold a huge influence on the government. He refused to let these militias hold sway on the government,” Traina added, and was seen as “someone that people could rally behind and support to try to bring some kind of unity to Libya.”
General al-Haddad had served in that post since 2020 and was seen as a key figure in efforts to unify Libya’s divided military structures, a crucial element of broader attempts to stabilise the country, which descended into chaos following the toppling of its long-term leader Muammar Gaddafi in 2011.
Al Jazeera’s Traina said General al-Haddad was one of the first military officials who joined the rebel forces in the revolution that toppled Gaddafi.
Libya is currently divided between the internationally recognised government based in Tripoli and the rival administration in the east led by military commander Khalifa Haftar.
“He was a very charismatic and strong leader. General Mohammed was someone who was respected by all sides,” Al Jazeera’s Traina said. “He was someone who believed in the rule of law, always talked about values of democracy, and wanted to transition Libya into civilian rule.”
Al-Haddad’s death is being mourned in the eastern part of Libya governed by a rival administration, including Haftar, who expressed sorrow and offered his condolences.
During his Turkiye trip, al-Haddad held talks in Ankara with Turkish Defence Minister Yasar Guler, and his Turkish military counterpart, Selcuk Bayraktaroglu. Ankara has cultivated close military and economic ties with the Tripoli-based administration, but recently, Ankara has moved to strengthen relations with the eastern administration led by Haftar.
What do we know about the plane crash?
Burhanettin Duran, Turkiye’s head of communications, said the Dassault Falcon 50 jet departed Ankara Esenboga Airport at 17:17 GMT on Tuesday, bound for Tripoli.
At 17:33 GMT, it notified air traffic control of an electrical malfunction and declared an emergency, according to his statement. The jet was 37 years old, according to flight tracking site Flightradar24.
Controllers directed the aircraft back towards Esenboga and initiated emergency protocols, but it vanished from radar at 17:36 GMT while descending to land, and communication was lost, Duran said.
Interior Minister Ali Yerlikaya said had earlier reported that the plane requested an emergency landing while flying over Ankara’s Haymana district.
Yerlikaya added that the wreckage was later located near Kesikkavak village in the area. Search and rescue teams reached the crash site after operations were launched by the Interior Ministry.
The Interior Minister later said that authorities had recovered cockpit voice and flight data recorders, collectively known as black boxes. An investigation is under way to “fully clarify” the cause of the crash, he told reporters in Ankara.
Investigations into the cause are continuing with the participation of all relevant agencies, Duran said. Turkiye has appointed four prosecutors to lead the probe, and Yerlikaya noted that 408 personnel were deployed for the search and recovery effort.
A group of military officials from Libya is carrying out inspections at the crash site, according to Turkish state news agency Anadolu.
Were other people killed in the crash?
Yes. All people on board died in the crash. In addition to al-Haddad, seven others died in the crash, including four senior Libyan military officials and three crew members.
Among the Libyan officials killed were:
- General al-Fitouri Ghraibil, head of Libya’s ground forces.
- Brigadier General Mahmoud al-Qatawi, director of the Military Manufacturing Authority.
- Muhammad al-Asawi Diab, senior military adviser.
- Muhammad Omar Ahmed Mahjoub, a military photographer.
What are the reactions to al-Haddad’s death?
Libyan Prime Minister Abdul Hamid Dbeibah described the incident as a “tragic loss”.
“This great tragedy is a great loss for the nation, the military establishment, and all the people,” he said. “We have lost men who served their country with sincerity and dedication and were an example of discipline, responsibility, and national commitment.”
In a statement from the eastern Libyan armed forces, commander Haftar expressed “deep sorrow over this tragic loss” and offered condolences to General al-Haddad’s family, tribe, and city, as well as “to all the Libyan people”.
What’s next?
In a statement, Libya’s Government of National Unity announced a three-day mourning period, during which flags will be flown at half-staff across all state institutions, and all official ceremonies and celebrations will be suspended.
Austria’s former defence attache to Libya, Wolfgang Pusztai, said the death of al-Haddad was “very significant” and a major blow for Dbeibah.
“Al-Haddad hails from Misrata, an important merchant city about three hours east of Tripoli, just like Dbeibah, and the key role of al-Haddad was to ensure the loyalty of the mighty militias of the city of Misrata to the government,” Pusztai told Al Jazeera.
“Misrata is the most important military power in western Libya, and this might really trigger some problems for Dbeibah, if this loyalty is broken in the future.”
Libya’s Presidential Council has appointed General Salah Eddine al-Namrush as the acting chief of staff for the Libyan army until General al-Haddad’s replacement is announced.
“It’s extremely big shoes to fill. It is really going be very difficult for authorities to find somebody as charismatic and strong who can unify the country like Mohammed al-Haddad,” Al Jazeera’s Traina said.
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