Cursor for each row

Question

I'm in need of help. While inserting new data I need to use cursors. For now, I'm managed to insert data by matching two tables and after the match is done, two values stored in variables are inserted into the third table.

The only issue is that every row has the same value which is wrong. Ultimately, I have no idea why is this happening, trying to include count, changing the list of cursors which thing should happen first, etc.

Declare @Ugovor_ID varchar(50), 
        @Zupanija_ID varchar(50),
        @Broj_ugovora varchar(50),
        @Naziv_Zup varchar(50)

DECLARE cc CURSOR FOR SELECT Ug_zup.[Broj ugovora], Ug_zup.Zupanija FROM Ug_zup

OPEN cc
FETCH NEXT FROM cc into @Broj_ugovora, @Naziv_Zup 

WHILE @@FETCH_STATUS=0
BEGIN
SET @Ugovor_ID   = (SELECT Ugovor_ID FROM Ugovor WHERE "Broj_ugovora" = @Broj_ugovora)
SET @Zupanija_ID = (SELECT Zupanija_ID FROM Zupanija_Sif WHERE Zupanija_naziv = @Naziv_Zup)


INSERT INTO Ugovor_Zupanija (Ugovor_ID, Zupanija_ID)
SELECT @Ugovor_ID,@Zupanija_ID

FETCH NEXT FROM cc into @Ugovor_ID, @Zupanija_ID 
END
CLOSE cc
DEALLOCATE cc
GO

THE RESULT IS LIKE THIS;

pic of the result