European Parliament approves €90 billion loan for Ukraine
Kyiv • UNN
The European Parliament has approved a support loan for Ukraine amounting to 90 billion euros for 2026-2027. These funds will be directed towards macro-financial assistance and strengthening defense capabilities.
The European Parliament has approved a support loan for Ukraine amounting to 90 billion euros, the European institution announced on Wednesday, UNN reports.
Details
"MEPs voted for three legislative acts providing Ukraine with a 90 billion euro EU loan, as it faces continued Russian aggression," the statement said.
As stated, the package of proposals aims to support Ukraine with a 90 billion euro EU loan for 2026 and 2027.
Of this amount, 30 billion euros, as noted, will be allocated for macro-financial assistance or budgetary support provided through the Ukraine Facility for Ukraine. 60 billion euros, according to the report, will be allocated to strengthen Ukraine's defense capabilities and support the procurement of military equipment, "ensuring timely access to critical defense products, in principle, from the defense industry of Ukraine, the EU, and the European Economic Area (EEA)/European Free Trade Association (EFTA)." If certain defense materials are not immediately available from these countries for urgent delivery to Ukraine, a number of exceptions will apply to their supply from other countries.
Financial assistance will be provided in accordance with Ukraine's financing needs, as defined in the financing strategy prepared by Ukraine and assessed by the European Commission. The strategy will require approval by the EU Council.
"All funding will be subject to strict conditions, including Ukraine's continued commitment to democratic governance, the rule of law, and the protection of human rights, particularly the rights of minorities. This includes ongoing efforts to combat corruption and strengthen democratic institutions," the European institution noted.
The support loan, it is reported, will be financed through joint EU borrowing on capital markets and guaranteed by the EU's long-term budget "reserve," with debt servicing costs covered by annual EU budgets. The European Commission estimated debt servicing costs at approximately 1 billion euros for 2027 and approximately 3 billion euros per year from 2028. Ukraine will be responsible for repaying the principal amount of the loan after receiving war reparations from Russia, the European Parliament indicated.
The legislative acts necessary to complete this support package, it is noted, were adopted under the European Parliament's urgent procedure to ensure rapid assistance to Ukraine.
"The EU Council must also officially approve the package so that the European Commission can make the first payment at the beginning of the second quarter of 2026," the European institution reported.
"I welcome the European Parliament's swift adoption of our proposal for an additional 90 billion euro loan for Ukraine. Ukraine's courage is unwavering. As is Europe's determination to stand by it. Today and tomorrow! Because a strong Ukraine makes all of Europe safer," commented European Commission President Ursula von der Leyen on the vote in the European Parliament.