Headlines
Investors react to EU funding deal for Ukraine
Published by Global Banking and Finance Review
Posted on December 19, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 19, 2025
2 min readLast updated: January 20, 2026
EU leaders approve a 90 billion euro loan for Ukraine, bypassing frozen Russian assets. Analysts weigh in on the fiscal and market implications.
SINGAPORE, Dec 19 (Reuters) - European Union leaders decided on Friday to borrow cash to fund Ukraine's defence against Russia rather than use frozen Russian assets, sidestepping divisions to secure a 90 billion euro loan.
German Bund futures dipped slightly in Asia hours and the euro eased marginally against a stronger dollar.
Here are what investors and market analysts are saying about the deal:
KYLE RODDA, SENIOR MARKET ANALYST, CAPITAL.COM, LONDON
"The big risk of using Russian assets to fund Ukraine's war effort is that it would cheapen European government paper and lead to higher rates on sovereign bonds. The flipside of that is that I would imagine this adds to the fiscal burden in Europe marginally."
"But I think that's a relatively small cost compared to what would be incurred if governments around the world in certain countries - China is the big one - decide that its not worth buying European debt because it could expose them to similar risk."
GEORGE BOUBOURAS, HEAD OF RESEARCH, K2 ASSET MANAGEMENT, MELBOURNE
"It's a good deal. More required and coming. (Recent U.S.-Europe energy deals) compliment the EU fund for Ukraine."
"While the geopolitical landscape has eased in H2 2025 there is also a risk that this recent detente is making markets complacent. This is a risk for 2026 that is not priced in."
(Reporting by Tom Westbrook; Editing by Amanda Cooper)
Debt sustainability refers to a country's ability to manage its debt without requiring debt relief or accumulating further debt, ensuring long-term financial stability.
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