On Wednesday, the European Parliament approved a package of three legislative proposals to make a €90 billion loan available to Ukraine for 2026 and 2027. The loan to support Ukraine is intended to help cover the country's urgent financial needs. Parliament used urgent procedure to get the aid to Ukraine as quickly as possible.
Of the loan, €30 billion will go towards macro-financial assistance and support for the state budget through the Instrument for Ukraine. Another €60 billion is intended to strengthen Ukraine's defense capabilities and support the purchase of military equipment so that Ukraine can gain timely access to critical defense products.
The EU is counting mainly on supplies from Ukrainian, European, and EEA/EFTA defense industries. If some items are not available for urgent delivery from these sources, the rules will allow for targeted exceptions for purchases from other countries.
The Commission will provide financial assistance according to Ukraine's needs, which it will outline in a financial strategy. The Commission will assess the strategy and obtain approval from the Council. The Union will make all funds conditional on strict conditions: Ukraine must continue to respect democratic governance, the rule of law and human rights, including the rights of minorities, while strengthening the fight against corruption and democratic institutions.
The EU will finance the loan through joint borrowing on the capital markets and guarantee it with a multi-annual budget reserve. Interest and costs will be covered by the EU's annual budgets. The Commission estimates around €1 billion in 2027 and around €3 billion per year from 2028 onwards.
Ukraine will begin repaying the principal after receiving war reparations from Russia. The package still needs to be formally adopted by the Council before the Commission can make the first payment in early Q2 2026.
(lud)