After lengthy and intensive discussions, the European Union has decided on a mechanism for providing a loan to Ukraine amounting to 90 billion euros for the years 2026-2027. This information was published in a statement on the official website of the European Council. According to the agreements reached, 60 billion euros will be allocated for military needs, while the remaining 30 billion will cover Ukraine's budget expenses.
The European Union will take on the interest payments for this loan, and Ukraine will begin repaying the debt only after Russia makes reparations payments. Countries such as Hungary, Slovakia, and the Czech Republic have refused to participate in the financing process; however, the other 24 member states will allocate the necessary amount. The first tranche of funds is expected to be transferred to Kyiv at the beginning of the second quarter of 2026.
France insisted on an important condition that prioritizes the procurement of weapons from Ukrainian manufacturers and EU member states. Supplies from other countries, including the USA, will only be possible if there is a need for specialized systems, such as Patriot air defense systems. Paris's initiative to allow the participation of the UK and other partner countries in the program, provided they make financial contributions, was also supported.
EU leaders reached a decision to provide an interest-free loan back in December 2025. At the same time, the idea of financing through frozen Russian assets was rejected, and a mechanism for loans backed by the EU budget was established.
This aid package has become the largest joint military-financial initiative of the EU in support of Kyiv. Previously, assistance was mainly provided through bilateral agreements or through funds not intended for military needs. The agreement is currently undergoing final stages of approval in the European Parliament, and its final approval is expected in the coming weeks.
