Ukraine Support Loan: €90 Billion Aid for 2026‑2027

The European Parliament has adopted a new regulation that creates a €90 billion “Ukraine Support Loan” for 2026‑2027.
The loan will be repaid only when Ukraine receives war‑reparations from Russia; until then the EU can use frozen Russian assets to cover the debt.

How the loan works

• €30 billion will be used for macro‑financial assistance – easing Ukraine’s budget and debt problems.
• €60 billion will support Ukraine’s defence industry, helping to buy weapons, build factories and modernise equipment.
• Funds are released in tranches, after the Commission reviews Ukraine’s annual “Financing Strategy” and confirms that Ukraine meets the conditions.

Conditions for Ukraine

• Keep democratic institutions, rule of law and human rights, and fight corruption.
• Provide a detailed financing strategy each year, showing budget, debt, defence needs and expected external help.
• Use the money only for the approved purposes and report monthly on how it is spent.

Implementation

• The EU will borrow the money on capital markets; no guarantee or provisioning is required.
• The loan is part of the broader Ukraine Facility and other EU instruments, and will be coordinated with other donors.
• The Commission will monitor use of the funds, open a special account for Ukraine, and can adjust the loan if Ukraine’s needs change or if reparations are paid.

Governance

• The loan is governed by a new agreement that protects EU financial interests and allows the EU to use Russian assets if needed.
• The regulation enters into force immediately after publication and applies to all EU member states that participate in the enhanced cooperation.