ECOFIN - Economic and Financial Affairs Council

04/23/2026 | Press release | Distributed by Public on 04/23/2026 05:57

Council finalises €90 billion support loan to Ukraine 13:49 The EU demonstrates its unwavering support for Ukraine by setting up a €90 billion loan to help finance urgent[...]

The Council today adopted the final key piece of legislation underpinning a €90 billion EU loan to Ukraine, agreed by the European Council in December 2025. The move will allow the Commission to begin disbursements as soon as possible in the second quarter of 2026.

The loan will help cover the country's most urgent budgetary and defence industrial capacity needs in 2026 and 2027, within a robust and conditional framework. Funding will be linked to strict conditions on Ukraine's side such as adherence to the rule of law, including the fight against corruption.

Today the Council approved the final element needed to allow for the disbursement of the €90 billion loan for Ukraine. The Cyprus Presidency has worked tirelessly to ensure all elements needed for the loan were in place. Loan disbursements will start flowing as soon as possible, providing vital support for Ukraine's most pressing budgetary needs. The EU remains steadfast in its support for Ukraine's sovereignty and territorial integrity.

Makis Keravnos, Minister of Finance of the Republic of Cyprus

The amendments to the EU regulation on the multiannual financial framework adopted today confirm that the Ukraine support loan will be financed through EU borrowing on the capital markets and will be backed by the EU budget headroom. The loan is to be repaid by reparations due by Russia to Ukraine.

The Council already adopted on 24 February the regulation establishing the Ukraine support loan itself, as well as a regulation allowing funds to flow through the Ukraine Facility - the EU's dedicated instrument for providing Ukraine with stable and predictable financial support. The Ukraine support loan regulation was agreed under the enhanced cooperation procedure with the participation of 24 member states.

Implementation of the loan

The financing will help strengthen the European and Ukrainian defence industries. It will be made available in two ways, and with the following indicative break-down:

  • €30 billion for macroeconomic support to Ukraine, channelled via macro-financial assistance or through the Ukraine Facility. This can be used to address Ukraine's most urgent budgetary needs.
  • €60 billion for Ukraine's capacity to invest in defence industrial capacities, including procurement of defence products. The funding will give Ukraine crucial and timely access to defence products from the defence industries in Ukraine, the EU, EEA-EFTA countries, as well as other third countries. Those third countries need to have either concluded a bilateral agreement with the Union under the SAFE regulation (the EU's financial instrument to help member states invest in defence) or demonstrated fulfilment of specific conditions and commitments.

Furthermore, targeted derogations may apply should Ukraine's military needs require urgent delivery of a defence product not available in Ukraine, the EU, EEA-EFTA countries or those third countries.

Disbursements will be made accessible in line with Ukraine's financing needs, determined by a financing strategy prepared by Ukraine itself.

After the positive assessment of Ukraine's strategy, the Commission submitted on 1 April 2026 a proposal for a Council implementing decision approving that positive assessment of the Ukrainian Financing Strategy and making the financial and economic assistance available to Ukraine.

This Council implementing decision, also adopted today, sets out that €45 billion should be made accessible to Ukraine to assist in implementing the Ukraine Financing Strategy in 2026, with the following distribution: €8.35 billion through macro-financial assistance, €8.35 billion through the Ukraine Facility, and €28.3 billion to support Ukraine's defence industrial capacities.

The Council Implementing decision was adopted today with the support of all 24 member states participating in the enhanced cooperation.

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