The EU secures funding deal for Ukraine as Putin delivers end-of-year news conference, despite his stance on frozen Russian assets.
The EU has announced a multi-billion dollar funding plan for Ukraine's economy and military for the next two years, funded by borrowing cash rather than tapping into frozen Russian assets. This deal, struck early Friday, offers a lifeline to Ukraine, which was rapidly running out of money. Meanwhile, Vladimir Putin signaled there'd be no compromise on Ukraine, calling the EU's plan to funnel frozen Russian assets to Ukraine 'robbery'.
Russia's economic slowdown, from 4.3% growth in 2024 to around 1% this year, is attributed to the central bank's decision to reduce inflation. Putin stressed that the government and central bank had planned for this growth, targeting inflation and managing to solve the task. The central bank cut the key interest rate by 50 basis points to 16%, down from a high of 21% in late 2024.
Putin also addressed the war in Ukraine, stating that Russia is ready and willing to finish the conflict by peaceful means. He demanded that Ukraine completely withdraw its troops from the Donetsk and Luhansk regions and abandon its plans to join NATO. However, Russia has refused to drop its demand for a complete withdrawal from these regions.
The Kremlin confirmed the exchange of 1,003 bodies, which Moscow says belong to Ukrainian soldiers, and the Ukrainian Coordination Headquarters for the Treatment of Prisoners of War stated that law enforcement investigators will examine the repatriated bodies.
A fresh wave of Russian airstrikes injured two civilians and left residents in one of Odesa' largest residential districts without electricity, water, and heat. Ukraine's airstrike into Russia injured one child in Belgorod, causing power outages in several villages.
The EU's decision to use frozen Russian assets to fund Ukraine's defense was met with criticism from Putin, who called it 'robbery'. The Belgian government raised concerns about the legality of this move, and the EU ultimately opted for an alternative plan, loaning Ukraine 90 billion euros to finance its economy and military through 2027.
The Institute for the Study of War reported that Putin has continued to exaggerate Russian successes on the battlefield, and there is evidence that Ukrainian forces have liberated a significant portion of Kupiansk. Putin taunted Zelensky, suggesting he should enter the city if it is under Ukrainian control.
The EU's funding plan is significant support for Ukraine, strengthening its resilience, according to Ukrainian President Volodymyr Zelensky. However, the decision to use frozen Russian assets remains controversial, with critics arguing it is legally questionable and risks retaliation by Moscow.
