EU credit to Ukraine enraged Putin

From the Dialog, Dec 21, 2025:

"A loan that enraged the Kremlin: why the EU decision was a bigger blow than sanctions

By allocating $90 billion to Ukraine, the European Union eliminated Kyiv's key financial risk and bet on a war of attrition that Russia will find increasingly difficult to sustain. 

Anders Nielsen, a military analyst at the Royal Danish Defence College, shared his opinion on the EU's $90 billion loan to Ukraine.  

Yigal Levin has compiled a summary of the expert's key points.  

European media have greatly underestimated the significance of this step. For some reason, it's portrayed as a sign of weakness, as if European countries couldn't agree on the seizure of frozen Russian assets. In practice, there's little difference: the loan implies that it will be repaid by the Russians through post-war reparations, not by the Ukrainians. 

The allocation of funds was critical for Ukraine: Kyiv was facing enormous problems balancing its budget for the following year. It's quite likely that Ukraine would have lost within six months. However, Ukraine now has the financial reserves to continue the war of attrition. 

The Russian leadership's rhetoric clearly reveals their disappointment with the decision. Putin's talk of "European piglets" is a direct result of the loan to Ukraine. Of course, the Kremlin's plans haven't changed, and won't change anytime soon—the Russian leadership still believes it can win the war, despite the enormous problems in its own economy. However, it at least recognizes that it will now have to invest even more in the current war, and that it will drag on even longer.  

 

What's also important is that the decision to provide the loan has marked Europe as a strategic player on the global stage. Previously, Europe was portrayed as a collection of countries that would follow in the wake of American policy. This is precisely what allowed the Americans and Russians to meet without the Europeans and decide on the future of European security.

It's worth noting that the American leadership was also upset by this decision. They, too, have started talking again about European warmongers who are hindering peace. However, this means that Europe is acting in its own interests, and no matter how upsetting this may be to other "great powers," it forces them to consider it as an equal."