EU Commission plans 90 bln euros loan for Ukraine's 2026-27 finances

BRUSSELS, Jan 14 (KUNA) -- European Commission President Ursula von der Leyen announced on Wednesday that the European Union will provide a 90 billion euros loan to support Ukraine's financial and military needs during 2026 and 2027, reaffirming Europe's steadfast commitment to Ukraine's security, defense, and future.
Von der Leyen explained, during a press conference held at the European Commission headquarters in Brussels, that EU leaders agreed last autumn to cover Ukraine's military and budgetary financial needs for 2026 and 2027, noting that the European Council agreed in December to provide stable and predictable funding for Kyiv.
The Commission adopted this morning the legal proposals necessary to implement this agreement, she said, clarifying that the loan will be provided under enhanced cooperation with the participation of 24 out of the EU's 27 Member States.
The proposed financial package will be divided into two parts: 60 billion euros or two-thirds of the total, for military assistance, and 30 billion euros for general budget support, ensuring the continued functioning of state institutions and basic services in Ukraine, she indicated.
Von der Leyen stressed that the military support will help Ukraine strengthen its defense capabilities and confront Russia, in addition to enhancing its integration into Europe's defense industrial base.
Funds will be used primarily to purchase equipment from Ukraine, EU Member States, and partners in the European Economic Area and the European Free Trade Association, with the possibility of procurement from outside this region if the required equipment is not available in a timely manner, she explained.
Regarding budget support, she emphasized that the funding is conditional on implementing reforms aimed at modernizing the Ukrainian state and bringing it closer to EU membership, including commitments to democratic processes, the rule of law, and anti-corruption measures, underlining that these conditions are "non-negotiable." She also clarified that the proposal for a "Reparations Loan," agreed upon in December, remains on the table, considering it a clear message to Russia that the EU reserves the right to use frozen Russian assets, which will remain immobilized until the war ends and reparations are paid.
Ukraine would not be required to repay the loan until such reparations are paid, she noted.
EU Chief reaffirmed the Commission's continued and unwavering support for Ukraine, expressing hope that the European Parliament and the European Council will swiftly approve the proposals, enabling the first disbursement of funding as soon as possible in April. (end) arn.lr