EU advances €90 billion Ukraine loan with focus on drones and defence

EU advances €90 billion Ukraine loan with focus on drones and defence
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The European Commission has taken preparatory steps to implement a €90 billion Ukraine Support Loan, including plans to mobilise funding for Ukraine’s budget and to speed up defence procurement in 2026 and 2027.

The package includes a proposal for EU member states to approve the overall amount of support for 2026 and a Commission decision validating the use of procurement derogations — exemptions from normal purchasing rules — for a first defence product schedule that will focus on drones, the Commission informed on Wednesday.

European Commission President Ursula von der Leyen said the Commission was taking steps to “mobilise this year’s budget and procure defence equipment”, with a focus on Ukraine’s drone industry.

€45 billion proposed for 2026, with drone procurement first

The Commission has proposed providing €45 billion to Ukraine by 31 December 2026, after a positive assessment of a Ukrainian Financing Strategy submitted on 24 March 2026, according to the statement.

The remaining part of the €90 billion loan is foreseen for 2027.

The proposal sets out a split between budget support of up to €16.7 billion and support for Ukraine’s defence industrial capacities of €28.3 billion.

Budget support would be divided equally between the Ukraine Facility and Macro-Financial Assistance, which are EU funding channels used to help cover government financing needs.

The Commission also adopted a decision allowing derogations for the procurement of drones, with further product schedules on other defence products — including missiles and ammunition — expected in the coming months.

The proposal will now be submitted to the Council of the EU, where member states will decide on the allocation of support for 2026.

The EU and its member states have provided €195 billion in overall support to Ukraine since the start of Russia’s war against the country, including €3.7 billion from the proceeds of immobilised Russian assets.


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