The European Parliament in Strasbourg on Wednesday approved a large financial aid package for Ukraine worth 90 billion euros (about 2.2 trillion crowns). The loan is intended to help the embattled country finance its defence and military spending while stabilising its state budget over the next two years.
Money to help keep Ukraine going
According to foreign media, the package is designed as a financial bailout for Kiev, which is facing huge costs for the war with Russia and the running of the state. The loan is intended to cover about two-thirds of Ukraine's financial needs for 2026 and 2027, with about €60 billion of the total to be spent on defence, military production and arms purchases, while another €30 billion is to serve as macroeconomic support and help finance the day-to-day running of the state, such as paying salaries, pensions and running hospitals. The approval came in a fast-track legislative process because without the additional funds, Ukraine was at risk of running out of funds during the spring.
The European Union will borrow the money itself
The financing of the package will be secured by the EU's collective borrowing on the financial markets. The loan will be guaranteed by the European budget and interest payments will be covered by future EU budgets. The principal itself should be repaid by Ukraine only after it has received any war reparations from Russia. At the same time, the EU is keeping frozen Russian assets as a possible source for future debt repayment. This mechanism is intended to ensure that the financial burden is borne primarily by the party that provoked the conflict, according to EU officials.
Aid is conditional on reforms
The European Union has attached conditions to the loan that relate to political and institutional reforms. Ukraine must continue to strengthen democratic institutions, respect the rule of law and protect human rights. Continuing the fight against corruption and increasing the transparency of the public administration are also essential conditions. According to European officials, financial assistance should also support deeper integration of the Ukrainian defence industry with the European market and increase the country's resilience to Russian aggression.
Not all EU countries have signed up
The package was approved through the so-called enhanced cooperation mechanism because not all Member States participate in it. The Czech Republic, Slovakia and Hungary have refused to take financial guarantees for the loan, so the project is only being implemented between the states that have agreed to it. Nevertheless, the proposal has received strong support from MEPs. 458 legislators voted in favour, 140 against and 44 abstentions.
The money may arrive as early as spring
If the loan is still formally confirmed by the EU Council, the European Commission will start raising funds on the financial markets. The first tranche of aid could be disbursed to Ukraine as early as the beginning of the second quarter of 2026. The approved package represents one of the largest ever European financial support to a state in wartime conflict and is intended, according to European officials, to strengthen not only Ukraine's defences but also the security of Europe as a whole.
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