European Commission approves documents for €90bn loan to Ukraine
The European Commission approved on 1 April a package of documents detailing the scope of support and planning preferences for drone procurement for the Armed Forces of Ukraine as part of technical preparations for a €90 billion loan to Ukraine for 2026-2027, which is currently blocked by Hungary.
The Commission continues technical work aimed at providing Ukraine with the €90 billion loan in 2026-2027.
"The package adopted today includes a proposal for the Council to approve the overall amount of the EU's support to Ukraine for 2026 and a decision validating the use of procurement derogations for the first defence product schedule under the Loan, which will focus on drones," the European Commission states.
The Commission said it had given a positive assessment of the financial strategy for the loan submitted by Ukraine to Brussels on 24 March 2026.
Under the approved documents, the Commission proposes allocating €45 billion to Ukraine in 2026 – exactly half of the planned loan funds. Of this amount, €16.7 billion would be directed to Ukraine's state budget, while €28.3 billion would support the armed forces, defence sector and weapons production.
"The budgetary support will be underpinned with strong conditions related to the rule of law, fight against corruption, economic resilience and sustainability," the Commission said.
An important provision of the documents approved on 1 April is that the European Union will allow Ukraine to deviate from loan rules for additional drone procurement needed on the battlefield.
"Ukraine's capacity to defend its territory depends on the rapid availability of critical products in the required quantities and within very short timeframes. The Commission has therefore also adopted today a decision allowing Ukraine to use derogations for the procurement of drones," it adds.
These exemptions are intended to support preparations for the first urgent defence procurements under the loan and "will be followed by additional product schedules on other defence products, including missiles and ammunition, in the coming months".
The document must now be approved by the EU (a qualified majority is required).
These measures will allow funding to be provided to Ukraine as soon as possible once Hungary lifts its veto.
Despite Hungarian Prime Minister Viktor Orbán blocking the €90 billion loan, the European Commission continues technical preparations so the funds can be released quickly once the veto is lifted.
On 19 March, Orbán said Budapest will not unblock any Ukraine-related decisions until Kyiv restores Russian oil transit through the Druzhba pipeline.