EU Approves €90 Billion Financial Support for Ukraine

Historic Agreement on Interest-Free Loan

The European Union leaders have reached a landmark agreement to provide Ukraine with a €90 billion interest-free loan for the years 2026-2027. This substantial financial package is designed to support Ukraine's military and economic needs as it continues to face ongoing conflict with Russia. The decision was announced by European Council President Antonio Costa following intense negotiations that extended into the early hours of Friday.

Funding Mechanism and Implications

According to EU diplomats, the funding will be raised through borrowing from international capital markets, with the EU budget serving as collateral. This approach was chosen over the more controversial option of using frozen Russian assets, which was deemed too complex legally and politically sensitive to implement in the near term. The chosen mechanism demonstrates the EU's commitment to supporting Ukraine while navigating complex geopolitical and financial considerations.

Significance of the Agreement

This €90 billion financial support package represents one of the largest commitments made to Ukraine since the beginning of the conflict. The interest-free nature of the loan significantly reduces Ukraine's financial burden, allowing the country to allocate more resources to both its military defense and economic recovery efforts. The agreement underscores the EU's continued support for Ukraine during a critical period in the ongoing conflict.