EU member states agree €90 billion loan for Ukraine

The European Council on 18 December agreed to provide a loan to Ukraine of €90 billion for the years 2026-2027, based on EU borrowing on the capital markets backed by the EU budget headroom. 

EU leaders meeting in the European Council discussed the latest developments on Ukraine, and took stock of ongoing work to address Ukraine’s pressing financial needs for 2026-2027, in light of the options presented by the European Commission.

The Council said in a press release that any mobilisation of resources of the Union’s budget as a guarantee for the loan would not have an impact on the financial obligations of the Czech Republic, Hungary and Slovakia.

This loan would be repaid by Ukraine only once reparations are received. Until then, these assets will remain immobilised and the Union reserves its right to make use of them to repay the loan, in full accordance with EU and international law.  

In the document EUCO 26/25, firmly supported by 25 Heads of State or Government, the European Council also called on the Council of the EU and the European Parliament to continue working on the technical and legal aspects of the instruments establishing a Reparations Loan based on the cash balances associated with Russia’s immobilised assets. The European Council will revert to this issue at its next meeting.

“We have agreed to roll over our sanctions against Russia. Our goal is not to prolong the war,” President of the European Council Antonio Costa told journalists after the meeting. “In fact, today’s decisions are a crucial contribution to achieve a just and lasting peace for Ukraine. Because the only way to bring Russia to the negotiation table is to strengthen Ukraine. Today’s decisions will provide Ukraine with the necessary means to defend itself and to support the Ukrainian people.”

He added that the EU political and financial support to Ukraine “will not falter: in war, in peace and in reconstruction”.

Find out more

Press release

Conclusions on Ukraine

Remarks by President António Costa