This article is brought to you in association with the European Commission.
Today, the European Commission adopted a set of legislative proposals to secure continuous financial support to Ukraine in 2026 and 2027. This marks a significant milestone in the EU’s strong support for the country’s defence against Russia’s war of aggression.
The legislative package consists of:
- A new proposal establishing a support loan for Ukraine (based on art. 212 TFEU) for an amount of € 90 billion.
- A new proposal to amend the Ukraine Facility (based on art. 212 TFEU), as one of the means to implement budgetary assistance for Ukraine.
- A new proposal to amend the Multiannual Financial Framework Regulation (based on art. 312 TFEU) to allow the coverage of the loan to Ukraine from the EU budget “headroom”.
In December, the European Council agreed to provide €90 billion in decisive support for Ukraine’s budgetary and military needs over the next two years. That agreement reaffirms the European Union’s unwavering commitment to supporting Ukraine.
This financial commitment will take the form of a €90 billion limited recourse loan to Ukraine for 2026 and 2027 – known as the Ukraine Support Loan. The proposed support would be structured in two components, with approximately two thirds, amounting to €60 billion, allocated to military assistance, and the remaining one third, corresponding to €30 billion, provided as general budget support. The support will help Ukraine strengthen its defence capabilities and ensure the continued functioning of the state and basic public services, while also contributing to Ukraine’s resilience and its closer integration with Europe’s defence industrial base.
The Union reserves its right to use the Russian assets immobilised in the Union to repay the loan, in full accordance with EU and international law. The reparation loan, as proposed on 3 December 2025, has not been withdrawn and remains available should the co-legislators decide to pursue it.
The agreement was taken under enhanced cooperation, a mechanism that allows EU Member States to collaborate in specific areas, when it has become clear that the EU as a whole cannot achieve the goals of such cooperation within a reasonable period.
The support to Ukraine will be financed through common EU borrowing from capital markets, as initially proposed by the Commission among the available financing options. The loan to Ukraine will be guaranteed by the “headroom” of the EU budget as it is the case for other financial assistance programmes for Ukraine implemented since 2023, such as the Macro-Financial Assistance+, Ukraine Facility and the Macro-Financial Assistance loan under the G7-led Extraordinary Revenue Acceleration (ERA) loans initiative.
Building on the European Council’s decision, the European Commission promptly adopted a proposal for a Council Decision authorising enhanced cooperation to establish a loan for Ukraine. Today’s proposals further operationalised the agreed financial support, helping Ukraine sustain essential state functions and strengthen its resilience and defence capabilities.
Next steps
The legislative proposals have been submitted to the European Parliament and Council, with a view to launching the legislative process for their examination and adoption. For the European Commission to begin providing financial support to Ukraine in the second quarter of 2026, in line with the agreement at the European Council last December, it is essential that these acts are adopted swiftly.
Once this is achieved, the Commission will move forward with the adoption of the relevant Implementing Decisions, and work closely with the Ukrainian authorities to put the necessary arrangements in place so that the Commission can make its first disbursement of the loan.
As with other EU financial support mechanisms for Ukraine, this package will be underpinned by strong conditionality mechanisms. This includes the measures to strengthen the rule of law and the fight against corruption foreseen under the Ukraine Plan.
Background
Since the start of Russia’s war of aggression against Ukraine, the EU and its Member States have provided €193.3 billion in overall support to Ukraine and Ukrainians, including €3.7 billion from the proceeds of immobilised Russian assets – more than anyone else.
The support package presented today covers two thirds of Ukraine’s overall financing needs for the next two years, according to assessments by the International Monetary Fund. Continued and coordinated support from international partners therefore remains essential, including timely delivery on commitments by the G7 for 2026 and beyond, notably under the G7-led ERA loans initiative.
For More Information
Proposal for a Regulation amending Regulation (EU) 2024/792 establishing the Ukraine Facility
Macro-Financial Assistance (MFA)
Macro-Financial Assistance to Ukraine
EU solidarity with Ukraine – European Commission
Factsheet (January 2026): Solidarity with Ukraine – Key Achievements
Factsheet (December 2025): EU Solidarity with Ukraine
Share this Sting:
Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com
Subscribe to get the latest posts sent to your email.
Why don't you drop your comment here?