The European Council decided early this morning to take a €90 billion loan to cover Ukraine’s critical and emergency needs, ensuring Ukraine has clear funding for 2026-2027 and strengthening its position.
“The Council’s decision will ensure Ukraine has clear funding for 2026 and 2027, covering its emergency needs and strengthening its position both on the battlefield and at the negotiating table,” Foreign Minister Margus Tsahkna said. According to the agreement, a €90 billion loan will be provided to Ukraine for 2026 and 2027 and it will be based on EU borrowing on capital markets. The loan is guaranteed by the EU budget. Ukraine would repay the loan only after Russia compensates Ukraine for the damage caused by its war of aggression.
“It is important that until then, Russia’s assets remain frozen and the EU reserves the right to use them to repay the loan,” Tsahkna said, expressing regret that the Council failed to reach an agreement on allocating funds to Ukraine as a reparation loan. However, discussions on this are ongoing. “I expect the EU to continue working on the technical and legal details of creating a reparation loan based on Russia’s frozen assets in order to reach an agreement.”
Tsahkna stressed that Europe’s most powerful lever to support Ukraine remains Russia’s frozen assets, and that their use is financially sound and politically and morally correct. “Russia has consciously chosen a war of conquest and destruction, and Russia, not the European taxpayer, must bear the consequences,” Tsahkna said, adding that Estonia has consistently advocated for the use of Russia’s frozen assets to assist Ukraine since March 2022.
The Council also decided to extend the extensive economic sanctions imposed against Russia until 31 June 2026. The aim of the sanctions is to limit Russia’s ability to finance the war against Ukraine and to increase pressure to make Russia comply with international law.
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