The European Commission approved a €90 bn loan package for Ukraine during a meeting of the College of Commissioners on Wednesday, aimed at supporting the country’s military and budgetary needs through 2026–2027. Approximately two-thirds of the funds—around €60 bn—will go toward military assistance, while the remaining €30 bn is intended to cover Kyiv’s projected budget shortfalls.
The Commission emphasized a preference for sourcing military equipment from within the EU, though purchases from outside the bloc will be allowed if adequate European options are unavailable. Participation in the scheme is voluntary for some countries, with Hungary, Czechia, and Slovakia able to opt out under enhanced cooperation rules. Annual costs to EU member states are projected at €3–4 bn in interest.
No end in sight as fourth anniversary looms
Commission President Ursula von der Leyen described the support for Ukraine as crucial ahead of a sombre anniversary.
“In just over a month we will mark the 4th anniversary of Russia’s war of aggression in Ukraine. Today, I must say that Russia shows no signs of abating, no sign of remorse, no sign of seeking peace. On the contrary, over the Christmas break, we saw that Russia intensified its strikes, killing civilians and hitting energy infrastructure, and this must end.”
Today, I must say that Russia shows no signs of abating, no sign of remorse, no sign of seeking peace. – EU Commission President Ursula von der Leyen
She added that other parties desire peace for Ukraine, but that achieving it requires the country to negotiate from a position of strength.
“This is why we agreed in the fall to cover Ukraine’s financial needs for military and budget requirements for 2026 and 2027,” von der Leyen said.
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Next two years
Ukraine is estimated to require €135.7 billion in total support over the next two years, including €52.3 billion in fiscal support and €83.4 billion in military aid. Officials warn that the country could face a budget shortfall as soon as April, highlighting the urgency of the funding.
The loan will require approval from both the European Parliament and EU member states, with the Commission targeting an initial disbursement by April. While previous proposals to fund Ukraine directly from frozen Russian assets were not approved, the option remains under consideration. Von der Leyen underscored that the funds are locked and frozen:
“It is important to send a stark reminder to Russia that we reserve the right to use the immobilised Russian assets. The documents show that the assets will remain immobilised until the war ends and the reparations are paid.”
Valdis Dombrovskis, Commissioner for Economy and Productivity; Implementation and Simplification added: “Today’s proposals will safeguard Ukraine’s financial stability and strengthen its ability to defend itself. This represents an essential step towards ensuring just and lasting peace that guarantees real, long-term security for both Ukraine and Europe. It demonstrates once again our solidarity with the people of Ukraine and represents a vital investment also in Europe’s security.”
Attacks continue
The package comes amid ongoing Russian attacks on multiple Ukrainian regions, including Dnipro, Zhytomyr, Zaporizhzhia, Kharkiv, Kherson, Chernihiv, and Kyiv. Ukrainian President Volodymyr Zelenskyy reported over 100 attack drones and three ballistic missiles used in the recent assaults.
