Today, the European Council finalized crucial legislation facilitating a €90 billion loan to Ukraine, a commitment made by the Council in December 2025. Additionally, the Council has enacted its 20th package of sanctions targeting Russia.
“Deadlock over,” stated EU High Representative Kaja Kallas on X.
“Russia’s war economy is increasingly strained, while Ukraine receives significant support. We will ensure Ukraine has the resources needed to defend itself until Putin realizes his aggression leads nowhere.”
The funding aims to address Ukraine’s urgent budgetary and defense needs for 2026 and 2027, operating under a strict and conditional framework. Disbursement of funds will be contingent upon Ukraine’s compliance with the rule of law and its anti-corruption efforts.
“Loan disbursements will commence as soon as feasible, providing essential support for Ukraine’s immediate financial requirements. The EU remains resolute in its commitment to Ukraine’s sovereignty and territorial integrity,” remarked Makis Keravnos, Finance Minister of Cyprus.
The financial assistance will be allocated in two main categories, €30 billion dedicated to macroeconomic support through macro-financial assistance or the Ukraine Facility, and €60 billion aimed at enhancing Ukraine’s defense industrial capacity, including the procurement of military products.
Amendments to the EU regulation on the multiannual financial framework confirm that the loan will be financed through EU borrowing in capital markets and will be supported by available headroom in the EU budget. The repayment of the loan is expected to come from reparations owed by Russia to Ukraine.
In response to Russia’s invasion on February 24, 2022, EU leaders and institutions promptly condemned the aggression and violation of international law. The EU demands an immediate cessation of military actions by Russia, unconditional withdrawal of all forces and military equipment from Ukrainian territory, and full respect for Ukraine’s territorial integrity, sovereignty, and independence.
The EU stands united in its unwavering support for Ukraine, having significantly increased its political, humanitarian, financial, and military aid. Since the onset of Russian aggression, the EU, along with its member states and financial institutions, has mobilized over €93.6 billion to bolster Ukraine’s economic, social, and financial resilience through various forms of assistance.
Military support measures total approximately €63.2 billion, bringing the overall aid to Ukraine to over €156 billion. When combined with resources allocated to assist Member States in addressing the needs of Ukrainians fleeing the conflict and proceeds from immobilized Russian assets, total support for Ukraine approaches €177.5 billion.
Simultaneously, the EU has implemented an unprecedented series of sanctions against the Kremlin and the Lukashenko regime in Belarus.
By: Magdalene Agyeiwaa Sarpong