Council of the EU approves 90 billion euro support loan to Ukraine

The Council of the European Union adopted on April 23 the final key piece of legislation underpinning a 90 billion euro EU loan to Ukraine, agreed by the European Council in December 2025, a statement by the Council of the EU said.

The move will allow the European Commission to begin disbursements as soon as possible in the second quarter of 2026, the statement said.

The development follows Ukraine resuming pumping Russian oil to Hungary and Slovakia, the two EU countries that remain dependent on that oil and that had been blocking agreement on the loan.

The Council of the EU statement said that the loan will help cover Ukraine’s most urgent budgetary and defence industrial capacity needs in 2026 and 2027, within a robust and conditional framework.

Funding will be linked to strict conditions on Ukraine’s side such as adherence to the rule of law, including the fight against corruption, the statement said.

The amendments to the EU regulation on the multiannual financial framework adopted on April 23 confirm that the Ukraine support loan will be financed through EU borrowing on the capital markets and will be backed by the EU budget headroom.

The loan is to be repaid by reparations due by Russia to Ukraine.

The Council of the EU already adopted on February 24 the regulation establishing the Ukraine support loan itself, as well as a regulation allowing funds to flow through the Ukraine Facility – the EU’s dedicated instrument for providing Ukraine with stable and predictable financial support.

The Ukraine support loan regulation was agreed under the enhanced cooperation procedure with the participation of 24 member states.

The financing will help strengthen the European and Ukrainian defence industries, the statement said. It will be made available in two ways, and with the following indicative break-down:

Thirty billion euro for macroeconomic support to Ukraine, channelled via macro-financial assistance or through the Ukraine Facility. This can be used to address Ukraine’s most urgent budgetary needs.

Sixty billion euro for Ukraine’s capacity to invest in defence industrial capacities, including procurement of defence products. The funding will give Ukraine crucial and timely access to defence products from the defence industries in Ukraine, the EU, EEA-EFTA countries, as well as other third countries.

Those third countries need to have either concluded a bilateral agreement with the Union under the SAFE regulation (the EU’s financial instrument to help member states invest in defence) or demonstrated fulfilment of specific conditions and commitments.

Furthermore, targeted derogations may apply should Ukraine’s military needs require urgent delivery of a defence product not available in Ukraine, the EU, EEA-EFTA countries or those third countries, the statement said.

Disbursements will be made accessible in line with Ukraine’s financing needs, determined by a financing strategy prepared by Ukraine itself.

After the positive assessment of Ukraine’s strategy, the European Commission submitted on April 1 2026 a proposal for a Council implementing decision approving that positive assessment of the Ukrainian Financing Strategy and making the financial and economic assistance available to Ukraine.

This Council implementing decision, also adopted on April 23, sets out that 45 billion euro should be made accessible to Ukraine to assist in implementing the Ukraine Financing Strategy in 2026, with the following distribution: 8.35 billion euro through macro-financial assistance, 8.35 billion euro through the Ukraine Facility, and 28.3 billion euro to support Ukraine’s defence industrial capacities.

The Council Implementing decision was adopted today with the support of all 24 member states participating in the enhanced cooperation, the statement said.

European Commission President Ursula von der Leyen, in a message on X, said: “I welcome the agreement from the Member States on the 90 billion euro loan to Ukraine for 2026-27 and on 20th sanctions package. While Russia doubles down on its aggression, we are doubling down on our support to the brave Ukrainian nation enabling Ukraine to defend itself and putting pressure on Russia’s war economy”.

Ukrainian President Volodymyr Zelenskyy said on X: “Today is an important day for our defense and for our relations with the European Union.

“The European support loan for Ukraine has been unblocked – €90 billion over two years. This package will strengthen our army, make Ukraine more resilient, and enable us to fulfill our social obligations to Ukrainians, as set out in law,” Zelenskyy said.

It matters that Ukraine is securing this level of financial certainty – after more than four years of full-scale war, he said.

“We are working to ensure that the first tranche from this support package becomes available as early as May–June,” Zelenskyy said.

“The funds from the European package will be directed, among other priorities, to arms production, the procurement of necessary weapons from partners that we do not yet produce in Ukraine, and the preparation of our energy sector and critical infrastructure for the next winter.

“During meetings in Cyprus, we will also discuss with partners further sanctions pressure on Russia over this war. The 20th package has been unblocked, and it must be followed by other sanctions steps,” he said.

“And we will continue exploring a new format of cooperation with our partners – Drone Deals – which has already proven effective in the Middle East and the Gulf. We believe that only through joint efforts can we achieve truly significant strength – and Europe deserves that kind of strength. Glory to Ukraine!” Zelenskyy said.

(Photo: EC Audiovisual Service)