The Commission proposed mobilising €45 billion for Ukraine by the end of 2026. The remaining portion of the loan is planned for disbursement in 2027.
The proposal follows a positive assessment of Ukraine’s financing strategy submitted in March 2026. It will now be presented to the Council for adoption before funds can be released.
Officials said the funding is designed to address Ukraine’s external financing gap and defence requirements. It will complement contributions from international donors and align with broader support efforts.
The proposal sets out a division between budgetary support and defence-related spending. Up to €16.7 billion will be allocated for budget support, while €28.3 billion will be directed towards strengthening Ukraine’s defence industrial capacity.
Budget support will be provided through the Ukraine Facility and Macro-Financial Assistance mechanisms. The Commission said this funding will be subject to conditions related to the rule of law, anti-corruption measures and economic resilience.
In parallel, the Commission approved measures to accelerate defence procurement. It adopted a decision allowing Ukraine to use derogations for drone procurement.
Officials said the measure is intended to ensure rapid access to critical equipment. The Commission noted that Ukraine’s defence depends on the timely availability of key systems in sufficient quantities.
The derogation will support initial urgent procurement efforts. Additional measures covering other defence products, including missiles and ammunition, are expected in the coming months.
The proposal outlines next steps for implementation. Member States will decide on allocations once the Council adopts the legal framework.
Following approval, the Commission will proceed with borrowing on financial markets to fund the initiative. Further operational arrangements will be finalised with Ukraine and Member States.
The European Union and its Member States have already provided €195 billion in support to Ukraine since the start of the war. This includes €3.7 billion generated from immobilised Russian assets.
Officials said the Ukraine Support Loan is expected to cover two-thirds of Ukraine’s financing needs for 2026 and 2027. Continued international support, including commitments from the G7, remains essential for the programme’s success.
Source: European Commission.
