EU unveils details of €90 billion loan for Ukraine
Photo: European Commission President Ursula von der Leyen (Getty Images)
On January 14, the European Commission presented a plan to provide Ukraine with a €90 billion loan, which was agreed upon at a summit in mid-December. €30 billion will go to budget support and €60 billion to Ukraine's defense needs, according to the European Commission and President Ursula von der Leyen.
"Today we table our proposal for a loan of EUR 90 billion for 2026 and 2027- stable, predictable funding for our brave partner and neighbour. Above all it reaffirms Europe’s unwavering commitment to the security, defence, and future prosperity of Ukraine," von der Leyen says.
The proposal provides that the loan will be divided into two parts. One third, €30 billion, will go to budget support. The rest, €60 billion, will go to Ukraine's military needs.
One of the important points is the issue of defense procurement, which has caused controversy among EU members. According to von der Leyen, priority for defense procurement under the loan will be given to weapons production in the European Union, Ukraine, and the countries of the European Economic Area. If certain weapons cannot be purchased in the EU, Ukraine, or EEA countries, they may be purchased from third countries.
The EC press release states that the legislative package adopted on January 14 covers the following items:
- A new proposal to grant Ukraine a support loan (based on Article 212 TFEU) in the amount of €90 billion.
- A new proposal to amend the Ukraine Assistance Mechanism (based on Article 212 TFEU) as one of the means of providing budgetary assistance to Ukraine.
- A new proposal to amend the Multiannual Financial Framework Regulation (based on Article 312 TFEU) to allow the loan to Ukraine to be covered by the EU's budget reserve.
At the same time, the European Union reserves the right, if necessary, to use Russian assets frozen in the territory of the bloc's member states to repay the loan.
"The Union reserves its right to use the Russian assets immobilised in the Union to repay the loan, in full accordance with EU and international law. The reparation loan, as proposed on 3 December 2025, remains on the table," the release says.
EU loan to Ukraine
In mid-December 2025, in Brussels, the leaders of the EU member states agreed to allocate €90 billion in support to Ukraine in 2026-2027. This is a preferential loan that Ukraine will repay only if Russia pays reparations for the invasion.
This loan also replaced the loan that was planned to be issued to Ukraine from Russia's frozen assets. Unlike the previous idea, the €90 billion loan will be implemented through the issuance of joint EU debt obligations.
A dispute arose in the EU over the €90 billion for Ukraine. It revolved around Kyiv's ability to spend this money on weapons from the US. This could potentially affect Ukraine's ability to quickly obtain the necessary weapons. France demanded that preferences be given to EU countries, while Germany defended the possibility of purchasing weapons from the US and other countries if necessary.
