European Commission Approves EUR 90 Billion Loan for Ukraine for 2026-2027
The European Commission has approved a EUR 90 billion loan for Ukraine, to be distributed over 2026 and 2027, with EUR 30 billion for the general budget and EUR 60 billion for defense procurement. The funding aims to bolster Ukraine's defense capabilities and support government operations amid ongoing reforms for EU integration, although Czechia, Hungary, and Slovakia will not participate. The loan's repayment may involve frozen Russian assets, pending approval from the European Parliament and Council for timely disbursements.
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The European Commission has approved a EUR 90 billion loan for Ukraine to be disbursed over two years, 2026 and 2027. One third, EUR 30 billion, will support Ukraine's general budget, while EUR 60 billion is earmarked for defense procurement, primarily from Ukraine, the EU, and EEA/EFTA countries.
The loan aims to strengthen Ukraine's defense capabilities and ensure government functions amid ongoing reforms necessary for EU integration. Three EU member states—Czechia, Hungary, and Slovakia—will not participate in the loan agreement.
The European Commission retains the right to utilize frozen Russian assets for debt coverage, with repayment contingent upon reparations. The proposals will now proceed to the European Parliament and Council for swift adoption in time for initial disbursements to start in the second quarter of 2026.
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