Vital loan will cover Ukraine's financing for next two years
The European Union this week agreed on a key objective to provide vital financial support to Ukraine for the next two years, thanks to a €90 billion loan.
Backing a proposal from the European Commission, the heads of state and government agreed to provide the loan to secure Ukraine's finances for the years 2026-2027.
As Commission President Ursula von der Leyen explained, the European Council met this week with a very clear objective: "To address Ukraine's pressing financing needs for the next two years. And I am very pleased to say: we made it."
This week's landmark decision will see European Union Member States finance Ukraine with €90 billion of EU borrowing on the capital markets over the next two years.
"We will do this by way of enhanced cooperation that is backed by the EU budget headroom. And based on a unanimous agreement to amend the MFF," President von der Leyen explained.
It follows hot on the heels of last week's critical agreement on Russian assets held in the European Union.
"Last week already, we sent a clear and strong political message by immobilising Russian assets in the EU over the long term," President von der Leyen said.
President von der Leyen explained that Ukraine will only need to pay back the EU loan once it receives reparations from Russia.
"Until then, the [Russian] assets will remain immobilised. And the Union reserves its right to make use of the cash balances to finance the loan. This is the solution we found together," she said.
The President added that financing for Ukraine beyond 2027 will be part of discussions on the next Multiannual Financial Framework.
Europe stands united in its unwavering support for Ukraine in the face of Russia's war of aggression, for as long as it takes.
The European Union has already given €187.3 billion in overall support to Ukraine and Ukrainians, including €3.7 billion from the proceeds of Russian immobilised assets.
The EU has opened accession negotiations with Ukraine, and Member States have also offered temporary protection to over four million people fleeing the war.
Europe continues to work relentlessly with international partners to ensure a just and lasting peace for Ukraine.
