Ukraine's $90 billion loan could be repaid using Russian assets, Finance Ministry says
Photo: Ukrainian President Volodymyr Zelenskyy and European Commission President Ursula von der Leyen (Getty Images)
The European Union may use frozen Russian assets to repay a €90 billion loan to Ukraine. Such a scenario would be possible if Moscow refuses to pay reparations, Ukraine’s Finance Ministry press service told RBC-Ukraine.
How the funds will be used
According to the ministry, in 2026, Ukraine will receive the following from the €90 billion EU loan:
- €16.7 billion for social budget support;
- €28.3 billion for defense needs.
Budget support will be provided in the following format: €8.35 billion in macro-financial assistance and €8.35 billion through the Ukraine Facility program.
The first disbursements are expected as early as May–June 2026.
At the same time, the Finance Ministry noted that after the approval of the Ukraine Support Loan, Ukraine and the European Union continue technical consultations to finalize the agreement’s parameters.
"In particular, discussions are ongoing regarding the number and size of tranches. The allocation of budget support funds depends on meeting certain conditions, which may affect the size of individual tranches," the ministry said.
In 2027, Ukraine is also expected to receive €45 billion from the EU loan.
Of the total amount, around €30 billion will go toward budget support and about €60 billion toward military assistance.
As previously reported by RBC-Ukraine, the loan funds are not intended for use in reconstruction programs. However, Ukraine hopes to secure approval to use €5.4 billion for energy sector recovery.
How the loan will be repaid
The ministry emphasized that Ukraine will begin repaying the loan only after Russia pays reparations for the damage caused.
The Commission’s document does not specify a repayment timeline. If reparations are not paid, the EU reserves the right to use frozen Russian assets to repay the debt.
Ukraine will also not be obligated to repay the loan if Russia fails to compensate Kyiv for war-related damages.
€90 billion loan to Ukraine
Last week, EU countries unblocked a €90 billion loan for Ukraine after adopting a key procedural decision.
Hungary had been blocking the aid for several months, demanding the restoration of the Druzhba oil pipeline, which had been damaged by Russian strikes.
After Russian oil resumed flowing to Hungary and Slovakia via the Druzhba pipeline last week, Hungary lifted its veto on providing €90 billion in assistance to Ukraine.
