Key facts
- The EU and Ukraine agreed to speed up the payout of €45 billion from a €90 billion loan program.
- The accelerated funds were originally earmarked for 2027.
- Ukraine faces a $27 billion defense funding gap this year.
- Kyiv hopes to cover $7 billion domestically and seeks partners for the remainder.
- The €90 billion loan includes conditions for Ukraine, such as adherence to the rule of law and fighting corruption.
- €60 billion of the loan is designated for Ukraine's defense needs.
The European Commission and Ukraine have reached an agreement to expedite the disbursement of €45 billion, part of a larger €90 billion loan program initially intended for 2027. This acceleration aims to help Ukraine address its pressing defense funding needs amid escalating Russian attacks.
Ukraine's Prime Minister Sergii Koretskyi recently highlighted a significant defense funding gap of $27 billion (€23 billion) for the current year, with Kyiv hoping to secure the remaining amount from international partners. President Volodymyr Zelenskyy warned that a failure to bridge this gap in the coming months could impact Ukraine's ability to procure weapons early next year.
Diplomats noted that while some EU defense ministers had proposed disbursing portions of the 2027 loan this year, the Commission favored speeding up the 2027 allocation for next year. Zelenskyy expressed satisfaction with the agreement, stating it would ensure full coverage of Ukraine's financial and defense requirements for 2026 and 2027. The funds will be disbursed once Ukraine meets the stipulated conditions, which include reforms related to the rule of law and anti-corruption efforts.
The €90 billion loan, agreed upon in December, is designed to support Ukraine through 2026 and 2027, with €60 billion specifically allocated for defense. The joint statement also urged other international partners to fulfill their financial commitments to Ukraine.