European Parliament fast-tracks €90 billion EU loan plan for Ukraine

The European Parliament on Tuesday, January 20, approved the use of an urgent procedure at its plenary session in Strasbourg for three legislative initiatives that would enable the European Union to provide Ukraine with a €90 billion loan in 2026 and 2027.

Ukrainian media reported that lawmakers supported fast-tracking the legislative process for granting Ukraine a €90 billion loan over the next two years.

Under the urgent procedure, the European Parliament will consider three documents. The first concerns expanding cooperation to establish a loan facility for Ukraine. The second is a regulation on the implementation of enhanced cooperation to set up a Ukraine support loan facility for 2026–2027. The third provides for amendments to Regulation 2024/792, which established the Ukraine Facility.

The first document, which serves as the legal foundation for creating a loan for Ukraine under the EU’s enhanced cooperation mechanism, has already been approved by the Council of the EU and will be immediately submitted to the European Parliament for a final vote.

The draft decision authorising enhanced cooperation for the establishment of a loan for Ukraine is expected to be put to a vote in the European Parliament as early as Wednesday, January 21.

The other two legislative proposals must still undergo coordination and approval by both the Council of the EU and the European Parliament. They are expected to be submitted for a vote during the next plenary session of the European Parliament, scheduled for February 9–12, 2026.

Earlier, Ukrainian media reported that on Wednesday, January 14, the European Commission adopted a package of legislative proposals aimed at enabling the EU to provide Ukraine with a €90 billion loan to cover its financial and military needs in 2026 and 2027.

On the same day, the Committee of Permanent Representatives at the ambassadorial level in Brussels heard a presentation of these proposals. Following the discussion, several diplomats raised technical questions.

It was also recalled that on December 18–19, the European Council decided to provide Ukraine with a €90 billion loan for 2026–2027. The funding is to be raised through EU borrowing on capital markets and secured by EU budget reserves under the enhanced cooperation mechanism with Ukraine.

By Tamilla Hasanova