Overview
- €60 billion is designated for Ukraine’s military procurement in 2026–2027, with €30 billion reserved for budget support tied to rule-of-law and anti-corruption reforms.
- The plan favors sourcing from European defense suppliers, with exceptions allowing purchases outside Europe when EU industry cannot meet specific requests.
- Interest costs of about €3 billion per year will be paid from the EU budget, and Ukraine’s principal repayment is contingent on future Russian reparations.
- Hungary, Slovakia and the Czech Republic secured exemptions from participation in the loan mechanism.
- France pushes for a strict buy-European approach, while Germany and the Netherlands resist limits that could restrict access to urgently needed systems such as air defense and F-16 parts.