European Union leaders agreed to lend up to 90 billion euros ($105 billion) to Ukraine over the next two years, using joint borrowing as US financial support fades and the war with Russia drags on.

Under the arrangement, Ukraine would only be required to repay the loans if it ultimately receives war reparations from Russia.

The decision, reached early Friday after marathon summit talks in Brussels, allows the EU to raise debt backed by the bloc’s budget after months of disagreement over whether to seize or directly use Russian assets frozen in Europe, according to bloomberg report.

Instead, leaders opted for a workaround that preserves those assets while delivering urgently needed cash to Kyiv.

Until then, Moscow’s frozen assets estimated in the hundreds of billions of euros will remain immobilized in Europe, with the EU retaining the option to tap them to cover repayments if reparations materialize.

“I think this is a pragmatic, good solution that has the same effect as the solution that we discussed for a long time, but which turned out to be too complicated,” German Chancellor Friedrich Merz said, according to bloomberg.

The move comes amid growing anxiety in European capitals that Ukraine could face a funding crunch as soon as April, after Washington largely curtailed financial assistance.

US pressure on Kyiv to consider concessions in potential peace talks has heightened fears in Europe that a weakened Ukraine would embolden Moscow and destabilize the continent, according to officials.

Several EU leaders had pushed for directly using frozen Russian assets, arguing it would strengthen Ukraine’s negotiating position while forcing Moscow to shoulder the cost of the war.

Ukrainian President Volodymyr Zelenskiy, who joined the summit, said tapping those funds was “the most appropriate” option to ensure “Russia understands that it will have to pay reparations” for the destruction inflicted on his country.

French President Emmanuel Macron framed the decision as a test of Europe’s resolve. “We delivered what we committed to do for Ukraine,” he said after the talks.

While leaders pledged to continue exploring legal avenues to deploy Russian assets more directly, the joint-debt plan is a testament Europe’s determination to sustain Ukraine’s war effort and its own security even as transatlantic support becomes less certain.