Illustrative photo: Depositphotos

The Council of the European Union has agreed on its position on the legal framework for granting Ukraine a concessional loan of EUR 90 billion in 2026-2027. About this reported on the institution's website.

They noted that the loan to support Kyiv should help meet its urgent financial needs in the face of Russia's ongoing aggressive war: to this end, the funds will be used specifically to support Ukraine's budget and defense needs.

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According to the proposed scheme, the EU will allocate funding to Ukraine in two ways:

→ EUR 30 billion will be provided as macroeconomic support through the MFA program (medium- or long-term loans, grants or a combination of both, available only to countries receiving funding from International Monetary Fund) or through a special EU instrument Ukraine Facility;

→ 60 billion euros will be used to support Ukraine's ability to invest in "defense" and purchase military equipment.

"This funding will provide Ukraine with critical and timely access to defense products from both the Ukrainian and European defense industries," the EU Council noted.

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The loan will be financed by EU borrowing on the capital markets and secured by the bloc's budget. The loan will have to be repaid only after Russia pays Ukraine reparations for the war.

The new decision on the legal framework was adopted within the procedure enhanced cooperation involving 24 of the 27 EU member states. The Czech Republic, Hungary, and Slovakia did not join the process.

After agreeing on the framework, the EU Council will seek to quickly reach an agreement with the European Parliament on the final legal texts of the regulations for the loan and amendments to the Ukraine Facility program.

After all the stages are completed, the European Commission will be able to make the first payment on the loan at the beginning of the second quarter of 2026.

  • Earlier, European Commissioner for Economic Affairs Dombrovskis also said that the bloc plans to make the first loan disbursement to Ukraine as early as at the beginning of April.