The European Parliament has approved a €90 billion loan package to support Ukraine during the ongoing conflict with Russia. The package consists of €60 billion aimed at strengthening Ukraine’s defense and €30 billion allocated for macro-financial assistance and budget support. The loan is intended to address Ukraine’s immediate financial needs as the war enters its fifth year.
According to the adopted legislation, “€60 billion to strengthen Ukraine’s defence, €30 billion for macro-financial assistance and budget support. Ukraine must commit to continue democratic reforms and fight corruption. Loan to be financed through common EU borrowing, Ukraine to pay it back once it receives war reparations from Russia.”
The funds will be delivered through the EU’s Ukraine Facility. Defense-related funding will prioritize procurement from Ukrainian, EU, or EEA/EFTA industries. If necessary equipment is unavailable from these sources, targeted exemptions will allow purchases from other countries.
Financial aid distribution will follow a strategy drafted by Ukraine and evaluated by the European Commission. This strategy requires approval from the Council before implementation. The legislative acts were passed under an urgent procedure to expedite aid delivery.
Strict conditions apply to all funding, including requirements for continued commitment by Ukraine to democratic governance, rule of law, protection of human rights—including minority rights—and anti-corruption measures.
Repayment terms specify that Ukraine will be responsible for paying back the principal after receiving war reparations from Russia. Debt service costs are projected at about €1 billion in 2027 and approximately €3 billion per year from 2028 onwards.
Parliament approved three related pieces of legislation: the main loan proposal (458 votes in favor, 140 against, 44 abstentions), an amendment to the Ukraine Facility (473 in favor), and a revision of the long-term EU budget (490 in favor).
The Council must formally adopt the package before the first payment can be disbursed in early Q2 2026.
The loan was agreed at a European Council meeting on December 18, 2025, then presented by the European Commission on January 14, 2026. The total amount is expected to cover two-thirds of Ukraine’s estimated financial needs over this period. As Czechia, Hungary, and Slovakia chose not to participate in backing this loan, it was arranged under an enhanced cooperation procedure allowing willing member states to proceed without unanimous agreement.
Further details on adopted texts and regulations can be found through official parliamentary channels.
