The European Council said the loan would be repayable ‘only once Russia has paid war reparations to Ukraine.’
The European Council on Feb. 4 approved details of the 90 billion euro ($106 billion) loan for Ukraine to support the country’s budget and defense needs for 2026 and 2027.
The support loan will allocate two-thirds of the funding to military spending and one-third to general economic support, according to a European Council statement.
Cypriot finance minister Makis Keravnos said the agreement “shows that the EU continues to act decisively in support of Ukraine and its people.”
“The new financing will help ensure the country’s fierce resilience in the face of Russian aggression. At the same time, we are sending a strong signal that the sovereignty and territorial integrity of states must be fully respected, in accordance with international law,” Keravnos said.
The European Council, which includes the leaders of the 27 EU member states, said in the statement that the loan will be repayable “only once Russia has paid war reparations to Ukraine.”
In December, European leaders agreed to finance the loan through EU borrowing on their capital markets, backed by the EU budget, rather than use seized Russian assets frozen in the bloc.
The agreement also requires approval from the European Parliament, which comprises 720 members directly elected by citizens of member states. The European Council said it hoped for a “speedy agreement” with the European Parliament, enabling the first payment to Kyiv to be disbursed early in the second quarter of this year.
Writing in a post on X, European Commission President Ursula von der Leyen welcomed this step in financing Ukraine, calling it a “powerful symbol of our ironclad solidarity with Ukraine as we approach four years since Russia’s full-scale invasion began.”
“Our support will further strengthen Ukraine’s position on the battlefield—and its hand at the negotiating table,” von der Leyen wrote.
Ukrainian President Volodymyr Zelenskyy thanked the council for the decision, writing in a post on X that the assistance “not only strengthens Ukraine across various areas, but also reinforces our position at the negotiating table. It is a significant contribution to the security of all of Europe and to our shared future.”
