The European Parliament is launching an urgent loan for Ukraine. EUR 90 billion on the table
According to the schedule, some of the provisions regarding the loan will be put to a vote on Wednesday during the session in Strasbourg, and the remaining issues will be discussed at subsequent meetings of the European Parliament.
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The decision to grant Ukraine a loan of EUR 90 billion was made in December 2025, and the funds are to be transferred in 2026-2027.
The President of the European Commission, Ursula von der Leyen, proposed to allocate EUR 60 billion for military support and the remaining EUR 30 billion for budgetary purposes and reforms. Funds for military activities are to be spent mainly on the purchase of equipment produced in Ukraine and European Union countries. However, Von der Leyen pointed out that In exceptional cases, it will be possible to purchase equipment from outside the EU and the region if local resources prove insufficient.
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— If it is not possible to purchase the necessary equipment in this region, (…) sometimes there may be a need to purchase equipment from outside the European Union and from outside the region – emphasized the President of the European Commission.
This proposal is part of the restrictions on the purchase of American equipment, which also apply under the EU's SAFE program, which supports the defense investments of member states.
Russia's frozen assets on the negotiating table
Von der Leyen also recalled that the European Commission plans to use the assets of the Russian central bank frozen in the EU as collateral.
“This should be a clear reminder to Russia that we reserve the right to use its immobilized assets,” she said.
The loan for Ukraine will be taken out by the European Commission on the capital markets, and its repayment will be secured by the European Union budget.
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According to the arrangements, Ukraine will repay its liabilities after receiving war reparations from Russia. Until then, Russian assets will remain frozen, which was confirmed at the EU summit.
Race against time
EU Commissioner for Financial Affairs Valdis Dombrovskis expressed hope that the legislative work would be completed in early March.
When asked about the possibility of taking out a loan before April, when Ukraine may face a lack of funds, he replied that talks are ongoing with other international partners who also provide financial support to Ukraine.
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— We want them to pay their contributions already in the first quarter of this year to cover the financing gap (…) and I can say that this work is also progressing quite successfully, Dombrovskis said.
