The European Union today reached an agreement to establish a legal framework for providing Ukraine with a €90 billion loan for 2026–2027, as agreed by EU leaders at the end of last year. This is an important step towards meeting Ukraine’s urgent needs and strengthening its position both on the battlefield and at the negotiating table.
“The EU agreement ensures clear funding for Ukraine for 2026–2027, covering its urgent needs and strengthening its position both on the battlefield and at the negotiating table,” Foreign Minister Margus Tsahkna said. “I expect the European Parliament to approve it swiftly so that the first disbursement reaches Ukraine already at the beginning of the second quarter of this year, because Ukraine needs this support very much.”
Under today’s EU decision, €30 billion will be directed towards ensuring the functioning of the Ukrainian state and maintaining budget stability, and €60 billion will be invested in Ukraine’s defence industry and in the procurement of military equipment from European and Ukrainian companies.
The loan will be financed on the EU capital markets and guaranteed by the European Union budget. Ukraine will begin repaying the loan only once Russia has paid reparations for the war damage. Until then, Russian state assets will remain frozen, and the EU will retain the right to use them to repay the loan. “Russia is deliberately destroying energy infrastructure, leaving people without electricity and heating on the coldest winter days, and striking homes and kindergartens with missiles. Russia has knowingly chosen a war of conquest and destruction — and it must also face the consequences.”
“We will continue supporting Ukraine and raising the price of aggression for Russia until Putin finally understands that time is not on his side,” Tsahkna said, noting that he expects an agreement on the 20th package of sanctions against Russia in the near future.
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