The European Commission is proposing a decision to approve financial assistance for Ukraine under the Ukraine Support Loan for 2026 and 2027. The European Council previously agreed to a total loan of EUR 90 billion for these two years. This proposal approves EUR 45 billion for Ukraine to use until December 31, 2026.

The assistance is divided into two main parts:

• EUR 16.7 billion for budget assistance. This includes EUR 8.35 billion in loans and EUR 8.35 billion in macro-financial assistance.
• EUR 28.3 billion to support Ukraine's defense industrial capacities.

The macro-financial assistance will be paid in three installments: EUR 3.2 billion, EUR 3.7 billion, and EUR 1.45 billion.

To receive this money, Ukraine must continue to uphold democratic mechanisms, the rule of law, and human rights, including fighting corruption. The loan will be repaid by Ukraine only after reparations are received from Russia. Until then, assets from the Central Bank of Russia will remain frozen to help repay the loan. The money will not be released until a guarantee for the loan is available. The plan assumes the war will continue in 2026 and uses an exchange rate of EUR 1 = UAH 49.356. The European Commission confirmed that Ukraine's financial plan is complete and consistent with data from the International Monetary Fund and other donors. The decision will take effect immediately upon publication. Some EU budget guarantees will not affect the Czech Republic, Hungary, and Slovakia.

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Broader context

This proposal is part of the EU’s long‑term plan to support Ukraine during the war with Russia. The €90 billion loan for 2026–2027 is a continuation of earlier EU financial aid. Linking Ukraine’s repayment to future Russian reparations and freezing Russian central bank assets is a new approach. It means the EU is trying to make Russia pay for Ukraine’s reconstruction, not European taxpayers. The separate €28.3 billion for Ukraine’s defence industry is unusual for EU assistance – it shifts support from purely economic help to military production capacity.

Impact on people living in the EU

For most EU citizens, there is no direct tax increase or daily life change. The loan is guaranteed by the EU budget, so if Ukraine never repays it (e.g., no Russian reparations), EU countries might eventually cover the loss – but the plan is to use frozen Russian assets first. Three EU countries (Czech Republic, Hungary, Slovakia) are exempt from some budget guarantees, meaning their citizens are less financially exposed than others. The immediate effect is that EU money continues to flow to Ukraine instead of being spent on EU internal projects, but this is a political choice already made by EU governments.

What this means for people in Ukraine

If approved, Ukraine will receive €45 billion by the end of 2026. The €16.7 billion budget part helps pay salaries, hospitals, schools, and pensions – keeping the country running. The €28.3 billion for defence industrial capacities means Ukraine can build weapons and military equipment inside Ukraine, creating jobs and reducing reliance on donated arms. However, to get the money, Ukraine must keep fighting corruption and upholding democracy – so some funds may be delayed if reforms stall.