EU finalises €90 billion support loan to Ukraine and 20th sanctions package

Today, the European Council adopted the final key piece of legislation underpinning a €90 billion EU loan to Ukraine, agreed by the European Council in December 2025. The Council also adopted the 20th package of sanctions against Russia

“Deadlock over,” EU High Representative Kaja Kallas posted on X. “Russia’s war economy is under growing strain, while Ukraine is getting a major boost. We will provide Ukraine what it needs to hold its ground, until Putin understands his war leads nowhere.”

The loan will help cover the country’s most urgent budgetary and defence industrial capacity needs in 2026 and 2027, within a robust and conditional framework. Funding will be linked to strict conditions on Ukraine’s side such as adherence to the rule of law, including the fight against corruption.

“Loan disbursements will start flowing as soon as possible, providing vital support for Ukraine’s most pressing budgetary needs. The EU remains steadfast in its support for Ukraine’s sovereignty and territorial integrity,” said Makis Keravnos, Minister of Finance of the Republic of Cyprus.

The financing will be made available in two ways, and with the following indicative break-down: €30 billion for macroeconomic support to Ukraine, channelled via macro-financial assistance or through the Ukraine Facility and €60 billion for Ukraine’s capacity to invest in defence industrial capacities, including procurement of defence products. 

The amendments to the EU regulation on the multiannual financial framework adopted today confirm that the Ukraine support loan will be financed through EU borrowing on the capital markets and will be backed by the EU budget headroom. The loan is to be repaid by reparations due by Russia to Ukraine.

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