Overview
- The European Commission’s proposal allocates €60 billion for military assistance and €30 billion for budgetary support over 2026–2027.
- Defense funds are intended primarily for equipment from Ukraine, EU, and EEA/EFTA industries with fast-track exceptions when supplies are unavailable or too slow, and some purchases could be channeled via NATO schemes.
- Ukraine’s access to budget support is conditioned on progress in rule-of-law and anti-corruption reforms described by EU leaders as non-negotiable.
- Repayment is tied to Russia paying reparations, the EU will issue joint debt to finance the loan, Europeans are expected to cover interest of about €3 billion annually, and officials say cash balances from frozen Russian assets could be used to reimburse the principal.
- Brussels targets legal readiness by early March to avert a spring liquidity crunch, with some EU states not participating in the fund and the IMF and G7 partners expected to help cover remaining financing needs.