EU Approves €90 Billion Loan for Ukraine's Defense and Budget Support

European Union ambassadors have given the green light to a €90 billion loan package destined for Ukraine, aimed at spanning financial needs from 2026 to 2027. The decision, forged in a confidential meeting in Brussels, highlights a significant commitment to support Ukraine amid its ongoing conflict with Russia.

The loan is set to be distributed two-thirds toward military aid and one-third toward general budget support, according to a Council of the EU statement. This strategic financial boost also prioritizes the procurement of defense products from EU, Ukrainian, or EEA-EFTA businesses to reinforce Kyiv’s defensive capabilities.

While awaiting European Parliament approval, the EU plans to initiate market borrowing to facilitate the first loan disbursement by early April. The EU's December agreement to fund the loan through its borrowing is a clear departure from utilizing Russian assets that remain frozen within the bloc.