On 11 February, the European Parliament adopted a package of proposals aimed at supporting Ukraine with a €90 billion EU loan for 2026 and 2027. The so-called Ukraine support loan will support to meet Ukraine’s urgent financing necessarys amid Russia’s ongoing war of aggression, now entering its fifth year.
Of the loan, €30 billion will be created available for macro-financial assistance or budreceive support, delivered through the EU’s Ukraine Facility. €60 billion will be allocated to strengthen Ukraine’s defence capabilities and support the procurement of military equipment, ensuring timely access to critical defence products from Ukrainian, EU, and European Economic Area (EEA)/European Free Trade Association (EFTA) defence industries.
Financial assistance will be provided in line with Ukraine’s financing necessarys, as set out in a financing strategy prepared by Ukraine and assessed by the Commission. The strategy will require approval by the Council.
All funding will be subject to strict conditions, including Ukraine’s continued commitment to democratic governance, the rule of law, and the protection of human rights, including the rights of minorities. This includes ongoing efforts to combat corruption and strengthen democratic institutions.
The support loan will be financed through common EU borrowing from capital markets and guaranteed by the ‘headroom’ of the EU long-term budreceive, and debt-servicing costs will be covered by the EU’s annual budreceives. The Commission has estimated the debt service costs at around €1 billion for 2027 and around €3 billion per year from 2028. Ukraine will be liable for the repayment of the principal of the loan once it receives war reparations from Russia.
The legislative acts necessaryed to complete this support package were adopted under the Parliament’s urgent procedure to ensure the provision of rapid aid to Ukraine.
The Council of the EU also necessarys to formally adopt the package in order for the Commission to be able to disburse the first payment early in the second quarter of 2026.
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