ROME, December 28. /TASS/. The European Union’s decision to provide a loan to Kiev instead of expropriating Russia’s frozen assets has marked a political setback for Vladimir Zelensky and his European partners, Il Fatto Quotidiano writes.

"The decision of Brussels [on the new European loan] secures Ukraine’s budget for 2026. From a technical standpoint, this is a relief, but politically it is a defeat for Zelensky and his European allies, who promised to make Moscow pay, but in reality, settled for a compromise," the newspaper reported.

Il Fatto Quotidiano reviews the results of the year, noting that 2025 was "the worst" for Ukraine following criticism at the White House that "cornered Zelensky," the cessation of US support, failures on the frontlines, and a corruption scandal.

The EU and the G7 countries have frozen around €300 billion in Russian assets. About €180 billion are held at the Belgian depository Euroclear. At a recent EU summit, leaders were unable to agree on the expropriation of Russia’s frozen assets under the guise of a so-called reparations loan to Ukraine. Instead, a decision was made to allocate €90 billion to Kiev over the next two years through joint borrowing.