EU moves closer to finalizing €90 billion Ukraine loan - Politico
Photo: Kyiv and Brussels still need to agree on details of repaying the loan using reparations (Getty Images)
The European Union is preparing to approve the terms of a 90 billion euro loan for Ukraine as early as Monday, May 18. This would bring Kyiv closer to receiving the first tranche worth more than 9 billion euros in June, Politico reports.
After completing internal procedures, the EU will give final approval to the loan immediately after Kyiv and Brussels agree on the details of repaying the debt using Russian reparations.
If Moscow refuses to pay reparations after the war, European leaders will reserve the right to use frozen Russian assets to repay the loan.
What the first tranche will fund
The money will be used to strengthen Ukraine’s defense, including the purchase of drones worth 5.9 billion euros. After that, the European Commission will transfer another 3.2 billion euros to Ukraine to cover budget expenses, including military salaries.
“The Commission aims to make the first disbursement as early as possible in the 2nd quarter of 2026. The first disbursement will cover the purchase of drones from Ukraine, for Ukraine,” a European official told the outlet.
At the same time, Politico reports that despite recent progress, the EU understands Ukraine will need even more funding in 2027. However, securing additional financing could prove difficult if member states are unwilling to take on more joint debt.
“The EU, its member states, and European financial institutions have provided, so far, a total of €200.6 billion to Ukraine. The EU is by far the largest and most stable financial partner of Ukraine,” a European Commission representative said.
As a reminder, on April 23, the European Council approved a 90 billion euro loan for Ukraine. The loan is expected to be repaid using reparations from Russia.
Meanwhile, discussions continue in Brussels over the use of frozen Russian assets. In particular, the Netherlands is trying to revive talks on a mechanism to transfer up to 210 billion euros in Russian assets to Ukraine to finance defense needs in 2026.
