Categories: Europe

European Commission takes preparatory steps on implementation of €90bn Ukraine support loan

The European Commission has taken ‘preparatory steps’ toward the implementation of the €90 billion Ukraine Support Loan, which seeks to secure the necessary budget support and defence procurement for Ukraine in 2026 and 2027.

The Commission announced a package that includes a proposal for the Council to approve the overall amount of the EU‘s support to Ukraine for 2026, as well as validating derogations allowing for the rapid procurement of drones.

Necessary steps

“We will deliver on the €90 billion loan to Ukraine,” commented European Commission President Ursula von der Leyen. “Today, we are taking the necessary preparatory steps to mobilise this year’s budget and procure defence equipment, with a focus on Ukraine’s cutting-edge drone industry.

“With this we send a clear message: the Commission stands ready to move forward. As we mark four years since the Bucha massacre, we remain fully and firmly behind the brave people of Ukraine and their fight for freedom.”

Support in 2026

The Commission proposes mobilising €45 billion in support for Ukraine in 2026, with the remaining portion of the loan expected in 2027. Of this amount, up to €16.7 billion is earmarked for budgetary support, split between the Ukraine Facility and Macro-Financial Assistance.

The remaining €28.3 billion will support Ukraine’s defence industrial capacities, including the production of drones and other essential military equipment. Budgetary support will be contingent on strict conditions, including adherence to the rule of law, anti-corruption measures, economic resilience, and sustainability reforms.

Once the Council formally adopts the implementing decision, EU Member States will allocate the support, enabling the Commission and Ukraine to finalize the necessary legal and operational arrangements for disbursement and procurement.

The package forms part of broader EU and international support for Ukraine, which has totaled €195 billion since the start of Russia’s war of aggression, including €3.7 billion from immobilised Russian assets. The Ukraine Support Loan covers approximately two-thirds of Ukraine’s overall financing needs for 2026 and 2027.

“Ukraine continues to face an urgent need for sustainable and predictable funding to ensure the Government can function and provide basic services to its citizens, as well as to procure the necessary military capabilities to defend its people and its sovereignty,” added Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy. “Today’s decisions mark a significant milestone in operationalising the EU’s security commitments.

“Ukraine must be in a position of strength – on the battlefield and at the negotiating table. This is a top priority for Europe’s security.” Read more here.

Editor

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