EU Finalises €90 Billion Financial and Defence Support for Ukraine

The Council of the European Union has adopted the final legislative act enabling a €90 billion EU support loan to Ukraine, following political agreement reached by the European Council in December 2025. The decision allows the European Commission to begin disbursements from the second quarter of 2026, providing large‑scale financial support for Ukraine’s most urgent budgetary needs and defence industrial capacity in 2026 and 2027. Of the total amount, €30 billion is earmarked for macroeconomic support, to be delivered either through EU macro‑financial assistance or via the Ukraine Facility, while €60 billion is allocated to strengthening Ukraine’s defence industrial capacities, including the procurement of defence products from Ukraine, the EU, EEA‑EFTA countries and eligible third countries. The loan will be financed through EU borrowing on capital markets and is backed by EU budget headroom under the multiannual financial framework, with repayment linked to reparations due from Russia to Ukraine. Access to the funding is made conditional on Ukraine’s continued adherence to the rule of law, including effective anti‑corruption measures, within a structured and monitored framework. The support loan forms part of the EU’s broader commitment to provide stable, predictable financial assistance to Ukraine and to reinforce both Ukrainian and European defence industries at a time of sustained security and fiscal pressure.

SOURCE: Council of the European Union