Brussels approves €90 billion loan for Ukraine for 2026–2027

The European Commission has approved a loan agreement to provide Ukraine with €90 billion over 2026 and 2027, European Commission President Ursula von der Leyen announced on January 14.

“We all want peace for Ukraine. For this, Ukraine must be in a position of strength. Today we table our proposal for a €90 billion loan for 2026 and 2027. For a strong Ukraine on the battlefield and at the negotiating table,” von der Leyen said on X.

The loan, approved in December, is a joint debt instrument under a non-recourse agreement, meaning Ukraine will only repay after Russia ceases its war and agrees to pay reparations. Estimated interest repayments of €3-4 billion annually will fall on 24 EU member states, as Hungary, Slovakia, and the Czech Republic were exempted.

A “Made In Europe” requirement ensures the funds primarily support Ukraine’s and Europe’s defence industries. Commission President Ursula von der Leyen said: “The funds will be used to purchase equipment made from Ukraine, from the European Union, and the EEA/EFTA countries. But if these necessary equipments are not possible in this region or in due time, then it might also occasionally be possible to acquire the equipment outside.”

Von der Leyen added, “For us, it is a lot of money. These are billions and billions that are being invested. And these investments should have a return on investment in creating jobs, in creating research and development that is necessary for us. We have in parallel to boost our defence industrial base for the sake of not only the loan, but also for our own security.”

By Aghakazim Guliyev