The European Commission has proposed a €90 billion loan to provide Ukraine with financial support in 2026 and 2027, alongside changes to existing EU budget rules needed to underpin the plan.
The package includes a draft law to set up the loan, an amendment to the EU’s Ukraine Facility programme, and a change to the EU’s long-term budget framework — the Multiannual Financial Framework — to allow the loan to be backed by unused capacity in the EU budget, the Commission said on Wednesday.
EU leaders agreed in December to provide €90 billion to meet Ukraine’s budgetary and military needs over the next two years.
The Commission said the proposed loan — described as “limited recourse” — would be split into about €60 billion for military assistance and €30 billion for general budget support to help keep the state running and maintain basic public services.
It added that the money would be financed by the EU borrowing from capital markets.
How the loan would be repaid
The EU reserved the right to use Russian assets immobilised in the bloc to repay the loan, in line with EU and international law, the Commission said.
The agreement was taken under “enhanced cooperation” — an EU mechanism that lets groups of member states move ahead together in specific areas when the bloc as a whole cannot reach the goal within a reasonable period.
The Commission said it has sent the proposed laws to the European Parliament and the Council of the EU for negotiation and adoption, and that it wants to start providing support in the second quarter of 2026.
Since Russia’s full-scale invasion, the EU and its member states have provided €193.3 billion in overall support to Ukraine and Ukrainians, including €3.7 billion from the proceeds of immobilised Russian assets.
