European Union (EU) approves €90 billion loan package for Ukraine

Key facts

• The European Union (EU) has approved a loan package of €90 billion to bolster Ukraine's defence against Russia.
• The financial aid will be disbursed in two equal installments of €45 billion in 2026 and €45 billion in 2027.
• The annual allocation consists of €28 billion for military needs and €17 billion for general budget needs.
• The loan covers two-thirds of Ukraine's total estimated requirements of €135 billion for the next two years.
• The EU will provide interest-free loans funded by borrowing on capital markets and underpinned by EU budget headroom.
• Repayment is expected only after Russia pays war reparations, with frozen Russian central bank assets in the EU, worth approximately €210 billion, earmarked as a potential guarantee.
• Hungary, Slovakia, and the Czech Republic have secured exemptions from this joint borrowing initiative.
• The loan's revival follows the election defeat of Hungarian Prime Minister Viktor Orban and the appointment of Peter Magyar as the incoming prime minister.