- €60 billion to strengthen Ukraine’s defense, €30 billion for macro-financial assistance and budget support
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Ukraine must commit to continue democratic reforms and fight corruption
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Loan to be financed through common EU borrowing, Ukraine to pay it back once it receives war reparations from Russia.
The European Parliament on Wednesday voted in favor of greenlighting a €90 billion EU loan available for Ukraine as it faces Russia’s four-year war of aggression.
In a 458-140 vote with 44 abstentions, lawmakers adopted a package of proposals aimed at supporting Ukraine with a €90 billion EU loan for 2026 and 2027.
The proposal to amend the Ukraine Facility received 473 votes to 140, and 32 abstentions, while the proposal to amend the 2021-2027 EU long-term budget (MFF) secured 490 votes to 130 and 32 abstentions.
The so-called Ukraine support loan will help meet Ukraine’s urgent financing needs amid Russia’s ongoing war of aggression which will enter its fifth year next week.
Of the loan, €30 billion will be made available for macro-financial assistance or budget support, delivered through the EU’s Ukraine Facility. €60 billion will be allocated to strengthen Ukraine’s defense capabilities and support the procurement of military equipment, ensuring timely access to critical defense products from – in principle – Ukrainian, EU, and European Economic Area (EEA)/European Free Trade Association (EFTA) defense industries.
If certain defense material is not immediately available from these countries for urgent delivery to Ukraine, it can apply to source them from other countries.
The €90 billion is intended to cover two-thirds of Ukraine’s estimated financial needs for the period concerned. As Czechia, Hungary and Slovakia have opted out from backing the loan, the agreement was taken under a mechanism that allows willing EU member states to collaborate in specific areas absent unanimity.
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