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EU Leaders Approve €90 Billion Ukraine Loan for 2026–27

Repayment hinges on Russian reparations, with EU institutions now set to formalize an assets-based mechanism.

Overview

  • European Council President António Costa announced an agreement to provide €90 billion in support to Ukraine for 2026–2027.
  • The package is an EU budget-backed loan that Ukraine would repay only after Russia pays reparations, and the EU reserves the right to use frozen Russian assets if Moscow does not pay.
  • German Chancellor Friedrich Merz said the decision was unanimous and described the loan as interest-free, framing it as sufficient for Ukraine’s military and budget needs over two years.
  • Leaders extended EU sanctions on Russia and tasked the European Commission with completing the legal and technical work to operationalize the reparations-linked loan.
  • Frozen Russian assets in Europe are estimated at roughly €210 billion, Belgium flagged legal and technical issues tied to their use, and Russia denounced any confiscation as theft.