European Union countries have reached an agreement and will issue a €90 billion loan package to support Ukraine’s financial stability and military needs in 2026–27, the Council of the EU said on February 4.
Of the total, €30 billion will go to macroeconomic support through EU financial assistance mechanisms, while €60 billion will be used to strengthen Ukraine's defense industry and fund military procurement from Ukrainian and EU producers.
"The Council now aims for a speedy agreement with the European Parliament to allow the first payment to be disbursed early in the second quarter of this year," it said.
The loan will be financed through EU borrowing on the capital markets and guaranteed by the EU budget. The loans are structured so that repayment will only begin once Russia has made war reparations to Ukraine.
The decision under the EU's enhanced cooperation procedure, with 24 member states participating. Czechia, Hungary, and Slovakia have chosen not to participate.
According to preliminary projections of the IMF, the total estimated remaining funding needs of Ukraine for the period 2026-27 amount to €135.7 billion, under the assumption that the war will end in 2026.
