European Parliament supports €90 billion loan for Ukraine

The European Parliament approved the decision to provide Ukraine with a loan of €90 billion in 2026-2027.

This is stated on the European Parliament website.

Of this amount, €60 billion will be allocated to strengthening defense and purchasing military equipment, and €30 billion will be allocated to macro-financial assistance and budget support through the Ukraine Facility program.

Part of the defense procurement is planned to be made in Ukraine, the EU and the European Economic Area, but if necessary, exceptions will be made for procurement in other countries.

The money will be provided in accordance with Ukraineʼs financial strategy, which will be assessed by the European Commission and approved by the EU Council. The funds will be allocated on the condition of continuing democratic reforms, the fight against corruption, and adherence to the principles of the rule of law and human rights.

The loan is planned to be financed by joint EU borrowings on capital markets. Debt servicing costs will be covered by the EU budget. Ukraine is to repay the principal amount of the loan after receiving war reparations from Russia.

The package was supported by a majority in the European Parliament: the key loan proposal was approved by 458 MEPs, 140 against, and 44 abstained. The decision must now be formally approved by the EU Council. It is expected that the first tranche will then be disbursed at the beginning of the second quarter of 2026.

The idea of such a loan was agreed by EU leaders at a summit in Brussels on December 18, 2025, and the European Commission presented legislative proposals in January 2026. In total, €90 billion should cover approximately two-thirds of Ukraineʼs financial needs for this period.

The Czech Republic, Hungary and Slovakia did not join the initiative, so it is being adopted under the enhanced cooperation procedure, which allows a group of countries to act without the unanimity of all EU members.

EU loans to Ukraine

Since early October, EU leaders have been talking about the possibility of providing Ukraine with a €140 billion loan using frozen Russian assets. Initially, the partners were unable to agree on the loan, with Belgium opposing it, and France and Luxembourg concerned about the legal implications.

The European Commission officially presented the idea of a reparations loan on December 6, and its details were revealed by Politico. This loan is to consist of €165 billion: €25 billion of frozen Russian state assets held in private bank accounts across the European Union, and €140 billion held in the Belgian financial institution Euroclear. The money was planned to be distributed as follows:

• €115 billion — to finance Ukraineʼs defense industry;
• €50 billion will cover Ukraineʼs budget needs;
• €45 billion will be used to repay the loan that the G7 provided to Ukraine in 2024.

Belgium opposed the loan out of concern that Russia would sue it if the plan went ahead, as the frozen assets are held in Belgiumʼs Euroclear. The Belgian prime minister asked the other 26 EU countries to guarantee coverage of the legal and financial risks.

And on December 5, Bloomberg, citing sources among European diplomats, wrote that the United States had lobbied several EU countries not to use Russian assets for reparations loans for Ukraine. American officials convinced EU member states that these assets were needed to secure a peace agreement between Kyiv and Moscow, so they should not be used to continue the war.

On December 8, the G7 countries supported the use of frozen Russian assets for reparations to Ukraine and stated that they were ready to increase pressure on Russia if peace talks failed.

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