Parliament approves €90 billion Ukraine support loan package

This article is brought to you in association with the European Parliament.

• €60 billion to strengthen Ukraine’s defence, €30 billion for macro-financial assistance and budget support
• Ukraine must commit to continue democratic reforms and fight corruption
• Loan to be financed through common EU borrowing, Ukraine to pay it back once it receives war reparations from Russia

MEPs voted in favour of three pieces of legislation to make a €90 billion EU loan available for Ukraine as it faces Russia’s continued war of aggression.

On Wednesday Parliament adopted a package of proposals aimed at supporting Ukraine with a €90 billion EU loan for 2026 and 2027. The so-called Ukraine support loan will help meet Ukraine’s urgent financing needs amid Russia’s ongoing war of aggression entering its fifth year.

Of the loan, €30 billion will be made available for macro-financial assistance or budget support, delivered through the EU’s Ukraine Facility. €60 billion will be allocated to strengthen Ukraine’s defence capabilities and support the procurement of military equipment, ensuring timely access to critical defence products from – in principle – Ukrainian, EU, and European Economic Area (EEA)/European Free Trade Association (EFTA) defence industries. If certain defence material is not immediately available from these countries for urgent delivery to Ukraine, a set of targeted derogations will apply to sourcing them from other countries.

Financial assistance will be provided in line with Ukraine’s financing needs, as set out in a financing strategy prepared by Ukraine and assessed by the Commission. The strategy will require approval by the Council.

All funding will be subject to strict conditions, including Ukraine’s continued commitment to democratic governance, the rule of law, and the protection of human rights, including the rights of minorities. This includes ongoing efforts to combat corruption and strengthen democratic institutions.

The support loan will be financed through common EU borrowing from capital markets and guaranteed by the “headroom” of the EU long-term budget, and debt-servicing costs will be covered by the EU’s annual budgets. The Commission has estimated the debt service costs at around €1 billion for 2027 and around €3 billion per year from 2028. Ukraine will be liable for the repayment of the principal of the loan once it receives war reparations from Russia.

The legislative acts needed to complete this support package were adopted under the Parliament’s urgent procedure to ensure the provision of rapid aid to Ukraine. The proposal on the Ukraine support loan was approved with 458 votes to 140 and 44 abstentions, the proposal to amend the Ukraine Facility received 473 votes to 140, and 32 abstentions, while the proposal to amend the 2021-2027 EU long-term budget (MFF) secured 490 votes to 130 and 32 abstentions.

Next steps

The Council also needs to formally adopt the package in order for the Commission to be able to disburse the first payment early in the second quarter of 2026.

Background

The EU support loan was agreed at the European Council in Brussels on 18 December 2025, and presented by the European Commission on 14 January 2026. The €90 billion is intended to cover two-thirds of Ukraine’s estimated financial needs for the period concerned. As Czechia, Hungary and Slovakia have opted out from backing the loan, the agreement was taken under the enhanced cooperation procedure, a mechanism that allows willing EU member states to collaborate in specific areas absent unanimity.