Overview
- The European Commission proposed allocating €60 billion for military procurement and €30 billion for budget support over 2026–27, with disbursements targeted to begin in April pending backing from member states and the European Parliament.
- Kyiv would be expected to source most defense purchases from EU and EEA industries, with exceptions when capacity or timing requires external buys and possible use of NATO procurement to route U.S. equipment.
- Access to the €30 billion in budget support would hinge on democratic, rule-of-law and anti-corruption reforms that Ursula von der Leyen described as non-negotiable conditions.
- The program would be financed through jointly issued EU debt, with EU taxpayers covering interest costs and a stated option to use cash from immobilized Russian assets if reparations are not paid.
- The IMF puts Ukraine’s two-year financing need at €137 billion and is preparing a separate loan expected next month as Brussels urges partners including the UK, Canada, Japan and Norway to help close the gap.