President of Ukraine Volodymyr Zelenskyy has submitted to the Verkhovna Rada a draft law on the ratification of a loan agreement with the European Union, according to the parliament's website on Thursday, UNN reports.
Details
The presidential draft law on the ratification of the loan agreement for support to Ukraine between Ukraine as the borrower and the National Bank of Ukraine as the borrower's agent, and the European Union, represented by the European Commission, as the lender, and the memorandum of understanding between Ukraine as the borrower and the European Union as the lender (regarding Ukraine's receipt of macro-financial assistance under the loan for support to Ukraine) was registered under No. 0376 on May 28.
The project defines the framework "for attracting funds within a total amount of up to 90 billion euros, including macro-financial assistance under the loan for support to Ukraine," according to the explanatory note.
As stated, the conclusion and subsequent entry into force of the loan agreement and the memorandum of understanding after their ratification "will allow Ukraine in 2026-2027 to attract up to 90 billion euros in financial resources from the European Union to support the state budget and strengthen defense potential."
In particular, within the framework of the Memorandum of Understanding, the volume of macro-financial assistance will amount to up to 8.35 billion euros. The basis for receiving the assistance is Regulation (EU) No. 2026/467 of 24.02.2026, which introduces enhanced cooperation regarding the initiation of a loan to support Ukraine for 2026-2027 for a total amount of up to 90 billion euros.
Within this instrument, by the Council Implementing Decision (EU) No. 2026/919 of 23.04.2026 on approving assistance to Ukraine in implementing the financing strategy for Ukraine, the financing strategy for Ukraine for 2026 was positively assessed, and the total volume of support for 2026 was determined at up to 45 billion euros, divided into two key components:
- defense component (up to 28.3 billion euros) – directed towards the purchase of weaponry and strengthening the defense-industrial potential;
- budgetary component (16.7 billion euros) – directed towards ensuring macro-financial stability and covering the state budget deficit.
At the same time, the even distribution of the budgetary component's financing is carried out through two instruments:
- up to 8.35 billion euros is provided directly as macro-financial assistance (which is the subject of the aforementioned memorandum);
- up to 8.35 billion euros – additionally through the Ukraine Facility mechanism.
The financial mechanism of the loan instrument for support to Ukraine is based on the European Commission raising resources on international capital markets. Utilizing the European Union's highest credit rating (AAA) ensures the attraction of financial resources on the most favorable terms.
At the same time, the costs of servicing these borrowings (interest) are fully covered by the EU budget, and the repayment of the principal amount of the loan will be carried out by Ukraine only after receiving reparations from the Russian Federation.
As stated in the explanatory note, in view of the above, the loan instrument for support to Ukraine establishes a framework for attracting a loan from the EU, the source of repayment for which is reparations from the Russian Federation for damage caused as a result of full-scale aggression. Until such reparations are received, it is provided that the servicing of the attracted resource will be carried out at the expense of EU funds.
Thus, the corresponding assistance has the legal status of a long-term concessional loan, but in fact, for the State Budget of Ukraine, it has the character of grant support and will be reflected as state budget revenues. Since current servicing is carried out by the EU, and the return of funds is postponed until the moment of actual payment of reparations by the aggressor, the implementation of these acts does not create a real debt burden and will not require additional expenditures from the budget of Ukraine, the explanatory note states.
As reported, "the implementation of the loan agreement and the memorandum of understanding will be carried out within the funds provided to the interested bodies in the State Budget of Ukraine for the corresponding year."