Putin says troops advancing, vows to meet war goals as EU approves Ukraine loan

Russian President Vladimir Putin said Friday that Russian troops are advancing along the line of contact and that Moscow will achieve its objectives through military means if Ukraine does not concede during peace talks, according to The Associated Press. "Our troops are advancing all across the line of contact, faster in some areas or slower in some others, but the enemy is retreating in all sectors," Putin said at his annual end-of-year news conference in Moscow, AP reported.

Putin added that Moscow would prefer to address the conflict through diplomatic means but warned that if the opposing side and its foreign patrons refuse to engage in substantive dialogue, Russia will achieve the liberation of its historical lands by military means, the Kremlin said in a release about a Defense Ministry board meeting earlier this week. The remarks come as the war drags on and as the European Union approves a sweeping loan package intended to bolster Kyiv’s finances in the coming years.

The European Union announced an agreement to provide Ukraine with more than $105 billion in loan financing to sustain Kyiv through 2026–2027 and beyond, a move Kyiv welcomed as a vote of confidence in Ukraine’s resilience. Ukrainian President Volodymyr Zelensky posted on X that he is grateful to all leaders of the European Union for the European Council’s decision on €90 billion in financial support for Ukraine in 2026–2027. He said the funding strengthens Ukraine’s resilience and emphasized the importance of immobilizing Russian assets and providing a financial security guarantee for the years ahead.

Separately, Ukrainian authorities said they carried out their first-ever underwater drone strike on a Russian submarine in Novorossiysk, underscoring Kyiv’s ongoing attempts to counter Russian naval activity and widen the scope of its battlefield tools. Zelensky has also pressed Western allies to respond to signals that Russia is preparing to make next year a year of war, a message, some officials say, aimed at sustaining Western support amidst ongoing fighting.

The developing dynamics come as Kyiv seeks to balance rising defense needs with international financial backing that Kyiv says is essential to maintaining resilience on multiple fronts. Analysts note that Putin’s framing of the conflict—as one that could be settled through diplomacy but ultimately decided by force if Kyiv and its partners refuse substantive dialogue—keeps pressure on Western capitals to calibrate military aid with diplomatic signals. The EU loan arrangement mirrors a broader effort by Kyiv’s partners to keep funding flowing while efforts to broker a durable peace continue, though major questions remain about the timelines and conditions under which any ceasefire could be sustained.

In Berlin and other capitals, officials have signaled readiness to sustain financial and political backing for Ukraine, even as they monitor Russia’s military posture across occupied areas and along frontline lines. The public remarks from Putin, given at a year-end briefing, come against a backdrop of ongoing battlefield activity on multiple fronts and a continuing debate in Western capitals about the most effective balance of deterrence and diplomacy.

IMAGE 1:

As the war persists, Kyiv’s leadership continues to frame European financial support as a critical pillar of Ukraine’s resilience and a signal of long-term Western commitment. Zelensky’s public reiterations of gratitude for the EU package reflect Kyiv’s effort to translate large-scale loans into concrete security guarantees and continued military reinforcement. Washington and other Western capitals have signaled readiness to maintain a steady flow of aid, while also pressing for political and diplomatic progress that could lead to a negotiated settlement on terms that Kyiv can accept.

The conflict has already produced a wide array of military and economic developments, from Ukrainian strikes on Russian naval assets to ongoing Russian operations designed to consolidate territorial gains in occupied areas. Kyiv continues to emphasize that international financial support buys time to sustain essential services, defense production, and humanitarian relief for civilians affected by the fighting. At the same time, Moscow has repeatedly insisted that its actions aim to protect Russian historical lands and security interests, signaling that diplomacy remains a backdrop to a broader strategic contest that could stretch into 2026 and beyond.

IMAGE 3: