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EU Unveils €90 Billion Ukraine Loan With European Preference for Arms Purchases

EU lawmakers must approve the plan for disbursements to start in Q2 2026.

Overview

  • The European Commission adopted legal proposals for a two‑year loan to Ukraine, splitting roughly €60 billion for defense and €30 billion for general budget support.
  • Procurement rules prioritize suppliers in Ukraine, the EU and EEA/EFTA, with purchases from third countries allowed when equipment is unavailable or urgently needed.
  • Member states remain divided on non‑EU buys, with France pushing stricter European preference and Germany and the Netherlands seeking flexibility, including a Dutch call to allow at least €15 billion for U.S. and other third‑country systems.
  • The loan proceeds under enhanced cooperation with 24 participating countries, with Czechia, Hungary and Slovakia opting out.
  • Ukraine would repay only after Russian reparations, and the EU says immobilised Russian assets could be used to cover costs, while final approvals are needed to begin payouts as early as April.