European Commission sets out plan for €90bn Ukraine loan over two years: one third for military assistance

The European Commission has approved a package of legislative proposals that paves the way for the European Union to provide Ukraine with a €90 billion loan to cover its financial and military needs in 2026 and 2027.

European Commission President Ursula von der Leyen presented plans by the European Commission to provide Ukraine with €90 billion in support over the next two years.

"We all want peace for Ukraine. And for that Ukraine must be in a position of strength… This is the reason why we agreed in the autumn that we would cover the military and budgetary financial needs of Ukraine for the years 2026 and 2027. In December, at the European Council, we agreed to support Ukraine with stable and predictable funding. This morning, the Commission adopted the legal proposals that deliver on that agreement. We will provide Ukraine with a loan of €90 billion for 2026 and 2027," von der Leyen said.

Von der Leyen noted that the funding will be provided through enhanced cooperation, involving 24 of the EU's 27 member states.

"The proposed support would be structured in two components, with approximately two thirds, amounting to €60 billion, allocated to military assistance, and the remaining one third, corresponding to €30 billion, provided as general budget support," she added.

The legislative package presented on 14 January consists of the following:

• A new proposal establishing a support loan for Ukraine (based on Article 212 Treaty on the Functioning of the European Union) for an amount of €90 billion.
• A new proposal to amend the Ukraine Facility (based on Article 212 Treaty on the Functioning of the European Union), as one of the means to implement budgetary assistance for Ukraine.
• A new proposal to amend the Multiannual Financial Framework Regulation (based on Article 312 Treaty on the Functioning of the European Union) to allow the coverage of the loan to Ukraine from the EU budget "headroom".

On 18-19 December 2025, the European Council decided to provide Ukraine with a €90 billion loan for 2026 to 2027 funded by EU borrowing on capital markets and supported by EU budget reserves under the enhanced cooperation mechanism with Ukraine.

Hungary, Slovakia and Czechia did not veto the scheme but declined to take part.

On 22 December 2025, the European Commission adopted a proposal for a Council of the EU decision allowing enhanced cooperation with Ukraine, a first step towards securing the loan funds. After EU ambassadors in Brussels approved the draft Council decision on authorising enhanced cooperation to establish a loan for Ukraine, it has been sent to the European Parliament for approval, which could take place as early as next week.

The first payment to Ukraine under the loan is expected to be made no later than the second quarter of 2026.