The European Commission has presented a comprehensive financial support package to ensure continuous backing for Ukraine throughout 2026 and 2027, reinforcing the EU’s commitment to the country’s defence against Russia’s war of aggression.
The package includes a new proposal for a €90 billion support loan to Ukraine, an amendment to the Ukraine Facility to implement budgetary assistance, and a revision of the Multiannual Financial Framework Regulation to allow coverage of the loan from the EU budget “headroom.” The European Council had already agreed in December to provide this decisive support for Ukraine’s budgetary and military needs over the next two years.
The €90 billion loan, known as the Ukraine Support Loan, is structured into two components: approximately €60 billion for military assistance and €30 billion for general budget support. This dual support aims to bolster Ukraine’s defence capabilities, maintain essential state functions, and strengthen public services, while further integrating the country with Europe’s defence industrial base.
The EU reserves the right to use immobilised Russian assets to repay the loan, in line with EU and international law, complementing earlier proposals for a reparation loan. The support will be financed through common EU borrowing from capital markets, guaranteed by the EU budget’s “headroom,” following the model of previous assistance mechanisms like Macro-Financial Assistance+ and the Ukraine Facility.
The legislative proposals have been submitted to the European Parliament and Council to begin the adoption process. Swift approval is crucial for the Commission to start disbursing funds in the second quarter of 2026. Once adopted, the Commission will finalize implementing decisions and coordinate with Ukrainian authorities to ensure the first tranche of the loan is delivered promptly.
As with previous EU financial support, the package will include strong conditionality measures, including reforms to strengthen the rule of law and combat corruption under the Ukraine Plan, ensuring that the funds contribute to Ukraine’s resilience, governance, and long-term recovery.
