The Council of the European Union has adopted the final legislative act enabling a €90 billion loan package for Ukraine, paving the way for funding to begin flowing as early as the second quarter of 2026.
The decision follows an agreement by EU leaders in December 2025 and completes the legal framework required for the European Commission to start disbursements.
The loan is intended to support Ukraine’s urgent budgetary needs and strengthen its defence industrial capacity during 2026 and 2027. It will be provided under strict conditions, including requirements related to the rule of law and anti-corruption measures.
Cyprus’ Finance Minister Makis Keravnos said the presidency had worked to ensure all elements of the package were in place, adding that the EU remains committed to Ukraine’s sovereignty and territorial integrity.
According to the adopted framework, the loan will be financed through EU borrowing on capital markets and backed by the EU budget. It is expected to be repaid using future reparations from Russia to Ukraine.
The package includes two main components:
- €30 billion will be allocated to macroeconomic support, either through macro-financial assistance or the EU’s Ukraine Facility, to help cover Ukraine’s most immediate budgetary needs.
- €60 billion will be directed toward strengthening Ukraine’s defence industry, including procurement of weapons and military equipment. Funding may also support cooperation with defence industries in EU and partner countries.
In urgent cases, derogations may allow Ukraine to access defence products from outside the EU framework if necessary supplies are not otherwise available.
Disbursements will be tied to Ukraine’s financing strategy and released based on assessed needs. Following a positive evaluation of that strategy, the European Commission submitted an implementing decision on 1 April 2026, formally approving the financial assistance framework.
