طباعة

The Ukraine Support Loan and EU military & defence support to Ukraine

The European Union and its Member States remain steadfast in their political, financial, and military support for Ukraine’s sovereignty, independence, and territorial integrity - Ukraine’s and Europe’s security are indivisible. Through the new Ukraine Support Loan, the EU is providing a €90 billion lifeline of support, where it is needed most.

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What is the Ukraine Support Loan?

Russia’s war of aggression against Ukraine continues to have devastating daily consequences for Ukrainian citizens, including sustained attacks on critical infrastructure and essential services.

The Ukraine Support Loan is a €90 billion limited recourse loan taken by the European Union and its Member States to help Ukraine defend itself against the ongoing full scale invasion, protect its citizens and secure infrastructure as Russia continues its war of aggression. 

The loan will support Ukraine’s general budget and defence needs for 2026 and 2027. Following the principle of “Nothing about Ukraine, without Ukraine”, the money will be made accessible in areas determined by a financing strategy prepared by Ukraine and approved by the European Union. The first disbursements took in place in June 2026.

What will the Ukraine Support Loan be used for? 

The Ukraine Support Loan will make €90 billion available to Ukraine in total, separated into two parts:

  • €30 billion will be provided through “Macro-financial assistance” and through the Ukraine Facility to meet a broad range of general budgetary needs and ensure the continued functioning of the state and basic public services. For example, the funds will provide budgetary support for public services, stimulate private sector investment, and finance infrastructure repair (energy, transport, housing).  
  • €60 billion will be used to support Ukraine’s urgent defence needs including through investments in Ukraine’s defence industry and procurement of military equipment from other countries. For example, air defence and anti-drone systems.  
  • For the procurement of defence products, the loan will be used to buy from companies in the EU, Ukraine, or EEA-EFTA countries. Should Ukraine’s military needs urgently require products that are not sufficiently available within these regions, targeted derogations can allow the purchase of equipment outside these countries.
Is the Ukraine Support Loan contributing to an escalation of the war? 

No, this loan aims to strengthen Ukraine’s ability to defend its sovereignty, territorial integrity, freedom and independence against the unlawful and atrocious Russia’s war of aggression. The money provided through the loan will be linked to strict conditions on Ukraine’s side, like the adherence to the rule of law and the fight against corruption. 

Will European taxpayers have to repay the loan? 

No, the money will originate from borrowing on capital markets. The EU will act as a guarantor for the loan which will have to be repaid by Ukraine only once it receives reparations from Russia for war reparations. 

While the interest rates will be paid by the EU budget, the European Council reserves its right to make use of frozen Russian assets, currently immobilized in Europe, to repay the loan in full accordance with EU and international law. It has further agreed that these assets will remain frozen for the foreseeable future, until reparations have been paid. 

The broader picture: How does the €90 billion loan contribute to Ukraine’s financing needs?

The Support Loan will cover two thirds of Ukraine's external financing needs for the next two years.

The EU and its Member States remain the largest contributor to Ukraine’s financial needs. Since the start of Russia's war of aggression in 2022, this overall support provided amounts to over €200 billion for both military and non-military assistance. The commitment from other international partners to Ukraine remains crucial for the defence of Ukraine and the EU continuous to advocate for their support on the world stage in various ways.

Zooming in: How will defence support be implemented and can partners contribute?

The implementation of defence support is firmly based on Ukraine’s needs. Ukraine defines these in structured support packages covering specific capability areas (e.g. drones, ammunition, missiles). In terms of sourcing, priority is given to European and Ukrainian production, moving to global markets where necessary (e.g. lack of equivalent products, insufficient scale or delivery lead time). Close partners of the EU can participate in the Loan, notably those that have a bilateral SAFE agreement or a Security and Defence Partnership in place. The EU’s support to Ukraine financed by the Loan is closely coordinated with NATO and other international donor formats.