The European Council's decision to provide Ukraine with 90 billion euros in funding is based on EU borrowing without the use of Russian assets and under the guarantee of the bloc's budget resources, which will not affect the Czech Republic, Hungary, and Slovakia, according to the European Council's conclusions of December 18, writes UNN.
The European Council agrees to provide Ukraine with a loan of 90 billion euros for 2026-2027 based on EU borrowing on capital markets, backed by the EU budget reserve. Through enhanced cooperation (Article 20 of the Treaty on European Union) on an instrument based on Article 212 of the Treaty on the Functioning of the European Union, any mobilization of Union budget resources as a guarantee for this loan will not affect the financial obligations of the Czech Republic, Hungary, and Slovakia.
The above, as stated, does not prejudice the specifics of the security and defense policies of individual Member States and takes into account the security and defense interests of all Member States in accordance with the Treaties.
The text set out in the European Council conclusions EUCO 26/25 on Ukraine, as reported, "was strongly supported by 25 Heads of State or Government." The European Council, it is noted, will return to this issue at its next meeting.
Details
At the same time, as stated in the conclusions, following recent proposals by the European Commission and the High Representative of the EU, "the European Council calls on the Council of the EU and the European Parliament to continue work on the technical and legal aspects of instruments establishing a 'reparations loan' based on cash balances related to blocked Russian assets."
Meanwhile, it is noted that the European Council agrees to provide Ukraine with a loan of 90 billion euros for 2026-2027 based on EU borrowing on capital markets, backed by the EU budget reserve "to ensure the necessary financial support for Ukraine from the second quarter of 2026, including its military needs."
It is reported that "this loan will be repaid by Ukraine only after receiving reparations." "Until then, these assets will remain immobilized, and the Union reserves the right to use them to repay the loan in full compliance with EU and international law," the conclusions state.
At the same time, the European Council emphasized the "importance" of the following elements regarding the loan to be provided to Ukraine:
- strengthening European and Ukrainian defense industries;
- Ukraine's continued support for the rule of law, including the fight against corruption;
- the specific nature of the security and defense policies of some Member States and the security and defense interests of all Member States.
Comment by the President of the European Council
"We made commitments and fulfilled them. In October, we decided that the European Union would cover Ukraine's urgent financial needs for 2026 and 2027. Last week, we decided that Russia would not get its assets back until Moscow stops its aggression. Today, we approved a decision to provide Ukraine with 90 billion euros for the next two years," commented the President of the European Council, António Costa.
"Urgently, we will provide a loan backed by the EU budget. This will meet Ukraine's urgent financial needs. And Ukraine will repay this loan only after Russia pays reparations. The Union reserves the right to use blocked assets to repay this loan. At the same time, we have mandated the European Commission to continue working on a 'reparations loan' based on blocked Russian assets," explained the EU summit's decision by the President of the European Council.
Ukraine's reaction
"I thank all the leaders of the European Union for the European Council's decision on financial support for Ukraine of 90 billion euros in 2026-2027. This is significant support that truly strengthens our resilience. It is important that Russian assets remain immobilized and that Ukraine has received a financial security guarantee for the coming years. Thank you for the result and unity. Together we protect the future of our continent," President of Ukraine Volodymyr Zelenskyy reacted to the decision on social media.