EU member states have agreed a negotiating position on a legal framework to provide a €90 billion EU loan to Ukraine for 2026 and 2027, with the first payment planned for early in the second quarter of this year.
The loan is intended to help cover Ukraine’s financing needs as Russia continues its invasion, including support for the country’s general budget and defence, the European External Action Service (EEAS) reported on Thursday.
“Today’s agreement shows that the EU continues to act decisively in support of Ukraine and its people,” said Makis Keravnos, Cyprus’s finance minister, in the statement.
The financing would be raised through EU borrowing on capital markets and backed by the EU budget, with repayment due only once Russia has paid war reparations to Ukraine.
Under the proposed framework, €30 billion would be provided as macroeconomic support — money aimed at helping a country meet broad financial needs — delivered through EU macro-financial assistance or the Ukraine Facility, an EU funding tool designed to provide predictable support.
A further €60 billion would be used to support Ukraine’s defence industry and to procure military equipment, including access to defence products made in Ukraine and the EU.
How procurement would work
Defence products would generally be bought from companies in the EU, Ukraine, or countries in the European Economic Area and the European Free Trade Association, the EEAS statement said.
Exceptions would be possible where urgent needs require products not available from those sources, and some non-EU countries could be associated with the loan for specific defence products under defined arrangements.
Access to the funding would be linked to conditions including adherence to the rule of law and anti-corruption measures.
The decision was taken using the EU’s enhanced cooperation procedure with 24 member states participating, it said.
Ukraine’s remaining estimated funding needs for 2026-2027 are €135.7 billion under preliminary International Monetary Fund projections, assuming the war ends in 2026.
The EU and its member states have provided €193.3 billion in assistance to Ukraine since the start of Russia’s military aggression.
