EU ministers have approved the final legislation needed to start paying out a €90 billion EU loan to Ukraine, with disbursements expected to begin in the second quarter of 2026.
The package was agreed by the European Council in December 2025 and is designed to support Ukraine’s budget and defence industrial capacity needs in 2026 and 2027, the Council of the EU said in a statement on Thursday.
Funding will be linked to conditions including adherence to the rule of law and anti-corruption measures.
The Council said the loan will be financed by the EU borrowing on capital markets and backed by “EU budget headroom” — the margin between EU spending limits and actual spending that can be used to support borrowing.
The loan is to be repaid by reparations due by Russia to Ukraine.
How the money is expected to be used
An indicative breakdown sets out €30 billion for macroeconomic support to Ukraine, delivered through macro-financial assistance or via the Ukraine Facility — the EU’s instrument for providing stable and predictable financial support to Ukraine — the Council said.
A further €60 billion is earmarked for Ukraine to invest in defence industrial capacity, including procurement of defence products, with access to supplies from Ukraine, the EU, EEA-EFTA countries and certain other countries that meet EU conditions.
The Council said it had already adopted legislation on 24 February establishing the loan and allowing funds to flow through the Ukraine Facility, with the measures agreed under an enhanced cooperation procedure involving 24 member states.
A Council implementing decision adopted on the same day sets out that €45 billion should be made accessible to Ukraine in 2026 to support its Financing Strategy, including €8.35 billion through macro-financial assistance, €8.35 billion through the Ukraine Facility and €28.3 billion for defence industrial capacity.
