Overview
- The European Commission proposed allocating €60 billion for military assistance and €30 billion for budget and reform support within an interest-free package covering 2026–27.
- The EU budget would back the borrowing, with annual interest costs of roughly €3–4 billion covered by the EU rather than Ukraine.
- Repayment would occur only if Ukraine receives Russian reparations, with the option to use frozen Russian assets in the EU if reparations do not materialize.
- Military procurement would follow a cascade that prioritizes availability in Ukraine, the EU or the EEA before purchases from other suppliers.
- The plan formalizes a shift toward EU-level borrowing after the pandemic fund, as an earlier idea to finance larger loans directly from frozen Russian central-bank assets faltered and commentators questioned repayment prospects and oversight.