Council agrees position on legal framework to provide €90 billion in financial support to Ukraine 15:39 As Russia’s war of aggression continues, the Council agreed its position[...]

The Council today agreed its position on the legal framework implementing the European Council agreement to provide a €90 billion loan to Ukraine for the years 2026-2027. The Council now aims for a speedy agreement with the European Parliament to allow the first payment to be disbursed early in the second quarter of this year.

The Ukraine support loan will help Ukraine address its urgent financing needs as Russia continues its war of aggression. To that end, it will specifically aim to support Ukraine's general budget and defence needs.

As also agreed by the European Council, the loan will be financed through EU borrowing on the capital markets and will be backed by the EU budget. The loans will become repayable only once Russia has paid war reparations to Ukraine. Furthermore, the financing will help strengthen the European and Ukrainian defence industries.

Today's decision was taken through the enhanced cooperation procedure with the participation of 24 member states.

Funding instruments

Under the proposed framework, the EU will make funding available to Ukraine in two ways:

• €30 billion will be provided as macroeconomic support to Ukraine, channelled via macro-financial assistance (MFA) or implemented through the Ukraine Facility, the EU's dedicated instrument for providing Ukraine with stable and predictable financial support.
• €60 billion will be used to support Ukraine's capacity to invest in defence industrial capacities and to procure military equipment. The funding will give Ukraine crucial and timely access to defence products from both the Ukrainian and EU defence industries.

The financial and economic assistance available under the loans will be made accessible in line with Ukraine's financing needs, determined by a financing strategy to be prepared by Ukraine itself. The Council will need to approve this strategy following a Commission assessment.

In all cases, funding will be linked to strict conditions on Ukraine's side such as adherence to the rule of law, including the fight against corruption.

Military and defence procurement

Defence products should in principle only be procured from companies in the EU, Ukraine, or EEA-EFTA countries. Should Ukraine's military needs require the urgent delivery of a defence product which happens not to be available in the EU, Ukraine or an EEA-EFTA country, a set of targeted derogations would apply.

In addition, the Council mandate provides that third countries other than Ukraine or EEA-EFTA members may be directly associated to the Ukraine Support Loan as far as specific defence products are concerned. The mandate distinguishes between two categories of third countries in that regard:

• Countries that have concluded a bilateral agreement with the Union under the SAFE regulation - the EU's financial instrument to help member states invest in defence. The association would have to be laid down in a delegated act for each such third country, also detailing the products which could be procured from that country's industry.
• Countries that have entered into a security and defence partnership with the EU, have committed to provide a fair and proportionate financial contribution to the costs arising from borrowing, and which are providing significant financial and military support to Ukraine. The association would have to be laid down in a Council implementing act, which would also detail the products which could be procured from that country's industry.

Debt service costs

To ensure the most favourable loan terms and to manage Ukraine's debt sustainability, the interest cost of the loan is planned to be covered by the EU budget.

This will not have an impact on the budget contributions of Czechia, Hungary and Slovakia, who have chosen not to take part in the enhanced cooperation.

Next steps

The Council will now seek a speedy agreement with the Parliament on the final legal texts of the regulation implementing the support loan and the regulation amending the Ukraine Facility.

The Council is also now expected to request, via written procedure, the consent of the European Parliament on an amendment to the current MFF regulation to guarantee the financial assistance under the EU budget.

Once all steps are complete, the Commission will be able to disburse the first payment early in the second quarter of this year.

Background

According to preliminary projections of the IMF, the total estimated remaining funding needs of Ukraine for the period 2026-2027 amount to €135.7 billion, under the assumption that Russia's war of aggression will end in 2026.

The European Council of December 2025 agreed that the EU will provide €90 billion - representing two-thirds of Ukraine's funding needs - in 2026 and 2027, including for macro-financial needs, to support investment in its defence industrial capabilities and procure necessary military equipment. Remaining funding needs are expected to be provided by other countries, in particular G7 partners. The European Council also directed that the loan should only become repayable once Russia had made war reparations to Ukraine.

Since the start of Russia's military aggression, the EU and its member states have provided €193.3 billion in assistance to Ukraine. The EU is committed to continue providing political, financial, economic, humanitarian, military and diplomatic support for Ukraine and its people.

• European Council conclusions (18 December 2025)
• EU solidarity with Ukraine (background information)