European Council finalises €90bn loan to Ukraine

On Thursday (23 April), the Council of the European Union has adopted the final legislation underpinning a €90 billion EU loan to Ukraine, clearing the way for disbursements to begin in the second quarter of 2026.

The package, agreed by the European Council in December 2025, is designed to support Ukraine’s urgent budgetary needs and strengthen its defence industrial capacity through 2026–2027. Funding will be conditional on reforms, including adherence to the rule of law and anti-corruption measures.

Of the total, €30 billion will be directed toward macroeconomic support, while €60 billion will be used to boost defence production and procurement, including cooperation with EU and partner-country industries.

The loan will be financed through EU borrowing on capital markets and backed by the EU budget, with repayment expected to be covered by future reparations from Russia.

A Council implementing decision adopted the same day also enables €45 billion to be made available in 2026 under Ukraine’s financing strategy, following a positive assessment by the European Commission earlier this month.

EU officials said the move demonstrates continued support for Ukraine’s sovereignty and ensures rapid financial assistance at a critical stage of the war.

Source: commonspace.eu with the Council of the European Union

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