EU Council approves €90bn loan to Ukraine

EU loan of €90 billion to cover Ukraine's needs until 2027

Council of the European Union at a closed-door meeting in Brussels approved the key parameters of a large-scale loan package for Ukraine in the amount of 90 billion euros. This is stated in the official report of the institution.

The loan programme is designed to ensure the financial stability of Ukraine over the 2026-2027 and support the state in countering Russian aggression.

How the funds will be distributed

According to the agreed details:

• €60 billion will be used for military aid to Ukraine;

• more €30 billion will be used for general budget support;

• interest on the loan will be covered by the EU budget, not by Ukraine;

• The weapons will be purchased mainly from Ukraine and the EU, but in case of urgent need, purchases from other countries may also be made;

• United Kingdom and some third countries will be able to contribute to the supply of weapons in exchange for financial participation in the programme.

The programme is attended by 24 out of 27 EU countries. Hungary, Slovakia and the Czech Republic refused to support the decision.

Further procedure

The final decision is to be made by European Parliament, The vote is expected in the coming weeks.

After approval European Commission will start raising funds on the financial markets, and first tranche Ukraine can already receive at the beginning of April.

Context.

The European Union has remained a key financial donor to Ukraine since the start of the full-scale war. The new loan package should be one of the largest instruments of long-term support, The Bank's strategy is to combine defence assistance with macro-financial stabilisation.