site.btaEuropean Parliament Approves EUR 90 Billion Ukraine Support Loan Package

The European Parliament on Wednesday adopted three legislative acts enabling a EUR 90 billion EU loan to be made available to Ukraine for 2026 and 2027, as the country continues to face Russia’s war of aggression.

The so-called Ukraine support loan is intended to help meet Ukraine’s urgent financing needs as the war enters its fifth year.

Of the total amount, EUR 30 billion will be provided as macro-financial assistance and budget support through the EU’s Ukraine Facility. The remaining EUR 60 billion will be allocated to strengthen Ukraine’s defence capabilities and support the procurement of military equipment, ensuring timely access to critical defence products primarily from Ukrainian, EU, and European Economic Area (EEA)/European Free Trade Association (EFTA) defence industries. Where certain defence material is not immediately available from these countries for urgent delivery, targeted derogations will allow sourcing from other countries.

Financial assistance will be provided in line with Ukraine’s financing needs, as set out in a financing strategy prepared by the Ukrainian authorities and assessed by the European Commission. The strategy will require approval by the Council of the EU. 

All funding will be subject to strict conditions, including Ukraine’s continued commitment to democratic governance, the rule of law and the protection of human rights, including minority rights, as well as ongoing efforts to combat corruption and strengthen democratic institutions. 

The Ukraine support loan will be financed through common EU borrowing on capital markets and guaranteed by the headroom of the EU’s long-term budget. Debt-servicing costs will be covered by the EU’s annual budgets. According to Commission estimates, debt service costs will amount to around EUR 1 billion in 2027 and about EUR 3 billion annually from 2028. Ukraine will be liable to repay the principal once it receives war reparations from Russia. 

The proposal on the Ukraine support loan was approved by 458 votes in favour, 140 against and 44 abstentions. The amendment to the Ukraine Facility was adopted by 473 votes to 140, with 32 abstentions. The amendment to the 2021–2027 Multiannual Financial Framework (MFF) was approved by 490 votes to 130, with 32 abstentions. 

The legislative acts were adopted under Parliament’s urgent procedure to ensure the rapid provision of assistance. 

The Council must now formally adopt the package before the Commission can disburse the first payment, expected in the early second quarter of 2026. 

The support loan was agreed by the European Council on December 18, 2025, and presented by the European Commission on January 14, 2026. The EUR 90 billion is intended to cover two-thirds of Ukraine’s estimated financing needs for the period concerned. As Czechia, Hungary and Slovakia opted out, the decision was taken under the enhanced cooperation procedure, which allows a group of willing Member States to move forward in the absence of unanimity.