Loan instead of Russian assets. EU agrees on package for Kiev

EU member state ambassadors in Brussels have agreed on the details of a large-scale loan of €90 billion for Ukraine, which is intended to help Kyiv bridge its financial needs in 2026 and 2027. According to available information, this is to be a key pillar of European support at a time of ongoing war with Russia.

Two-thirds of the package will go towards military aid, with the remainder covering the state's current budgetary expenditure.

An interesting element of the agreement is the emphasis on Ukraine purchasing weapons primarily from manufacturers in the EU, Ukraine, or EEA-EFTA countries. However, Brussels also allows for targeted exceptions if the situation requires rapid deliveries from other sources.

The agreement still has to be confirmed by the European Parliament, which, according to diplomats, should not be a problem.

The European Commission could then start borrowing on the markets, and the first funds could arrive in Kyiv as early as the beginning of April.

(reuters, pir)