Overview
- Two-thirds of the package (€60 billion) is earmarked for defense and one-third (€30 billion) for budget support tied to rule-of-law and anti-corruption reforms.
- The procurement plan prioritizes suppliers in Ukraine, the EU and the EEA, with limited exceptions to buy essential third‑country systems when Europe cannot deliver quickly, a compromise that could cover items such as Patriot air defenses.
- The loan proceeds under enhanced cooperation with 24 participating states, with Czechia, Hungary and Slovakia opting out of implementation.
- Ukraine would not repay unless Russia pays reparations, and the EU reserves the right to use cash balances from immobilized Russian assets to service the debt; borrowing costs for the bloc are estimated at roughly €3–4 billion annually from 2028.
- The Commission is pushing for fast-track passage in the Parliament and Council to unlock a first tranche as early as April, positioning the package to help close Ukraine’s 2026–2027 financing gap and support a new IMF program.