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EU Unveils €90 Billion Ukraine Loan Plan With European-First Arms Procurement

The proposal now heads for fast-track approval to unlock a first disbursement in early April.

Overview

  • Commission details allocate €60 billion for military support and €30 billion for Ukraine’s budget, funded via EU bond issuance guaranteed by the EU budget with interest costs covered centrally.
  • Repayment is tied to future Russian reparations, with the EU reserving the option to use immobilized Russian assets if reparations do not materialize.
  • A cascade rule gives priority to equipment sourced in Ukraine, the EU or the EEA, permitting third‑country purchases only when European supply cannot meet urgent needs.
  • France presses a strict Buy‑European approach, while Germany and the Netherlands oppose hard limits and The Hague proposes setting aside at least €15 billion for non‑European systems such as Patriot air defense and F‑16 munitions.
  • Member states and the European Parliament must sign off in the coming weeks, with disputes over procurement flexibility and cost‑sharing persisting as some countries seek opt‑outs from financing obligations.