EU to provide 90B euro loan to Ukraine for 2026 and 2026
The European Council has agreed to provide a 90 billion euro loan to Ukraine for 2026 and 2027, to be based on EU borrowing on the capital markets backed by the EU budget headroom, according to statements after EU leaders met on December 18 and 19.
By means of enhanced cooperation, in accordance with article 20 of the TEU, any mobilisation of resources of the EU budget will not impact the financial obligations of Czechia, Hungary or Slovakia, a statement by the European Council said.
This loan would be repaid by Ukraine only once Russia compensates Ukraine for the damage caused by its war of aggression, the statement said.
Until then, Russia’s assets will remain immobilised and the EU reserves the right to use them to repay the loan, in accordance with EU and international law.
The loan should strengthen Europe’s and Ukraine’s defence industries and ensure that Ukraine continues to uphold the rule of law and to fight against corruption.
European Commission President Ursula von der Leyen, speaking at a news conference after the European Council meeting, said: “This is the solution we found together.
“And as discussed in the last weeks, financing Ukraine beyond 2027 will be part of the next MFF (the EU’s Multinannual Financial Framework) discussion,” Von der Leyen said.
Bulgaria supported the decision for a 90 billion euro loan for Ukraine and is among the countries participating in the common European financing. Unlike Czechia, Hungary and Slovakia, Sofia did not request an exception from the financial guarantees on the loan.
European Council President António Costa said: “As a matter of urgency, we will provide a loan backed by the EU budget.
“This will address the urgent financial needs of Ukraine. And Ukraine will only repay this loan once Russia pays reparations. The Union reserves its right to make use of the immobilised assets to repay this loan,” Costa said.
“At the same time, we gave a mandate to the Commission to continue working on the Reparation Loan based on Russian immobilised assets,” he said.
