The European Parliament has approved a package to support Ukraine, including a €90 billion EU loan for 2026 and 2027.
The loan is split into €30 billion for macro-financial assistance — budget support to help fund the Ukrainian state — delivered through the EU’s Ukraine Facility, and €60 billion to strengthen Ukraine’s defence capabilities and support the procurement of military equipment, the parliamentary press service announced on Wednesday.
Defence purchases would, in principle, come from Ukrainian, EU and European Economic Area (EEA) or European Free Trade Association (EFTA) industries, with limited exemptions allowing sourcing from other countries if certain items are not immediately available for urgent delivery to Ukraine.
Funding would be provided in line with Ukraine’s financing needs under a financing strategy drafted by Ukraine and assessed by the European Commission, which would require approval by the Council of the EU.
All funding would be conditional on Ukraine’s continued commitment to democratic governance, the rule of law and the protection of human rights, including minority rights, as well as efforts to combat corruption and strengthen democratic institutions, the Parliament said.
How the loan would be funded and what happens next
The support loan would be financed through common EU borrowing on capital markets and guaranteed by “headroom” in the EU’s long-term budget — the margin between spending limits and the maximum resources the EU is allowed to call on.
Debt-servicing costs would be covered by the EU’s annual budgets, with the Commission estimating costs of about €1 billion in 2027 and around €3 billion a year from 2028.
Ukraine would be liable for repaying the loan principal once it receives war reparations from Russia.
MEPs adopted the measures under an urgent procedure, with the loan proposal passing 458 votes to 140, with 44 abstentions, while related changes to the Ukraine Facility and the 2021–2027 EU budget also passed.
The Council must still formally adopt the package before the Commission can make the first payment, which is expected early in the second quarter of 2026.
The loan was agreed by EU leaders in Brussels on 18 December 2025 and presented by the Commission on 14 January 2026, with the €90 billion intended to cover about two-thirds of Ukraine’s estimated financial needs for 2026 and 2027.
Czechia, Hungary and Slovakia opted out of backing the loan, meaning it was taken forward under the EU’s “enhanced cooperation” procedure, which allows groups of member states to proceed without unanimity.
