In just over a month, we will mark the fourth anniversary of Russia's war of aggression against Ukraine. Today, Russia shows no sign of abating. No sign of remorse. No sign of seeking peace. On the contrary. Over the Christmas break, Russia intensified its strikes, killing civilians and hitting energy infrastructure. This must end. We all want peace for Ukraine. And for that, Ukraine must be in a position of strength. This is the reason why we agreed in the fall that we would cover the military and budgetary financial needs of Ukraine for the years 2026 and 2027.
In December, at the European Council, we agreed to support Ukraine with stable and predictable funding. This morning, the Commission adopted the legal proposals that deliver on that agreement. We will provide Ukraine with a loan of EUR 90 billion for 2026 and 2027. This is done in enhanced cooperation with 24 out of 27 Member States participating. With this support, we make sure that Ukraine can on one hand bolster its defence on the battlefield and strengthen its defence capabilities – so, its military needs -, and on the other hand keep the state and basic services running. Above all, it reaffirms Europe's unwavering commitment to the security, defence, and future prosperity of Ukraine.
We propose to split the EUR 90 billion in two parts: Two-thirds for military assistance, namely EUR 60 billion. And one-third, that is, EUR 30 billion for general budget support. With this military assistance, Ukraine can stand strong against Russia. And at the same time, it can integrate more closely into Europe's defence industrial base. Now, how to use the funds: we will more or less structure it like in the SAFE proposal. The funds will be used to purchase equipment mainly from Ukraine, from the EU, and from our EEA/EFTA partners. But if these necessary equipment are not available in this region or in due time, it might be occasionally possible to acquire these equipments outside the European Union and outside the geographical region I just mentioned. So, in general, European preference, but in cascading principle, European preference first, and then if not possible, purchasing abroad. The budget support – the EUR 30 billion - is also designed to help Ukraine advance with its reforms and to modernise the country, the investment is conditioned to reforms, also to bring it closer to European Union membership. This includes, the commitment of Ukraine towards strong democratic processes, the rule of law, and anti-corruption measures. These conditions are non-negotiable for any financial support. You know our principles, investment together with reforms, also to make sure Ukraine moves forward on its path of accession to the European Union.
In parallel to today's package, as agreed in the European Council in December, our proposal for a Reparations Loan remains on the table. This should serve as a stark reminder to Russia that we reserve the right to make use of their immobilised assets. The document shows that the assets will remain immobilised until the war ends and reparations are being paid. You also see this reflected in the fact that Ukraine would not have to pay back the loan until reparations are being paid.
To conclude, Today, we are demonstrating our continued and steadfast support to Ukraine. We now count on the European Parliament and Council to agree swiftly on these proposals. In this way, we can make sure that Ukraine gets its first disbursement very soon in April.
