The European Union (EU) has completed a €90 billion loan agreement with Ukraine, aimed at addressing the country’s urgent budgetary and defense industrial requirements for 2026 and 2027. The loan, approved by the European Council in December 2025, comes with stringent conditions for Ukraine, including a commitment to upholding the rule of law and combating corruption. Cyprus Finance Minister Makis Keravnos emphasized the importance of this financial support, stating that disbursements will commence promptly to assist Ukraine in meeting its critical budgetary needs.
Disbursements from the loan will be tailored to Ukraine’s financial necessities as outlined in a financing strategy developed by the country itself. Of the total amount, €30 billion will be allocated for macroeconomic assistance to address immediate budgetary concerns, while €60 billion will be directed towards enhancing Ukraine’s defense industrial capabilities, including the procurement of defense equipment. European Council President Antonio Costa underscored the EU’s dual strategy of bolstering Ukraine and exerting pressure on Russia to achieve lasting peace in the region.
Costa reaffirmed the EU’s unwavering support for Ukraine, emphasizing the bloc’s unity in standing by the country. Additionally, the EU introduced its 20th round of sanctions against Russia, aimed at diminishing the country’s capacity for military engagement. The loan, which will be serviced and repaid by the EU itself, will be provided to Kyiv without any cost, given Ukraine’s inability to service its existing debts.
Ukrainian President Volodymyr Zelensky recently engaged in discussions with Costa regarding the release of the €90 billion financial assistance package. Zelensky highlighted the security agreements with countries in the Middle East and the Gulf region, emphasizing Ukraine’s unique system for safeguarding lives, which is being shared with partners through the Drone Deal initiative.
