EU approves 90 billion-euro loans to Ukraine

Under the special loan, Ukraine will receive 30 billion euros to support its budgetary needs and 60 billion euros to buy weapons and ammunition.

European Union countries have reached an agreement to issue a 90 billion-euro loan to meet Ukraine's financial and military needs for 2026 and 2027, with Brussels aiming to make the first payment in early April to save Kiev from a sudden decline in foreign aid.

The agreement on legal texts was reached by ambassadors Wednesday afternoon after Cyprus, the holder of the Council's rotating presidency, presented a new version.

Today's “Agreement shows that the EU continues to act decisively in support of Ukraine and its people. The new financing will help ensure the country's strong sustainability in the face of Russian aggression”, said Makakis Keravnos, Cypriot Finance Minister.

“at the same time, we are sending a strong signal that the sovereignty and territorial integrity of states must be fully respected, in accordance with international law. ”

The 90 billion-euro loan, which was approved politically at a summit in Brussels, will be financed through the issue of joint debt, with the EU budget as guarantees for investors.

As part of the deal, Hungary, Slovakia and the Czech Republic will be fully excluded from all financial obligations, including annual interest payments. The three countries had firmly opposed any additional aid to Kiev.

The European Commission estimates that the remaining 24 member states will have to pay between 2 billion euros and 3 billion euros annually to cover the respective costs.

The 90 billion-euro figure will be divided into two main pillars: 30 billion euros in budgetary aid and 60 billion euros in military aid. Bilance can change if the war ends.

Made in Europe

Buying weapons and ammunition was the last point of dispute in talks between EU ambassadors. France, a vocal policy lawyer “Made in Europe”, pressured to limit purchases outside the continent as much as possible materially.

In the end, the loan will follow the so-called cascading progress”: weapons and ammunition will be purchased within Ukraine, the EU, Iceland, Liechtenstein, Norway and Switzerland. If the equipment is nowhere available, Kiev will be allowed to go to other markets, such as the United States, to get what it needs to fight.

Countries that have security partnerships and protection with the EU, such as the United Kingdom, Japan, South Korea and Canada, will also benefit from the purchase priority if they pay a fair and proportional “contribution to borrowing costs.

This corresponds to a connection between Brussels and London.

It is important that the United Kingdom be ready to participate”, an EU official said, speaking on condition of anonymity. “As for the geopolitical situation, approaching the United Kingdom is best for Europe. And it's going to make things more flexible for Ukraine”.

90 billion euros will gradually be disbursed over time and subject to strict conditions. For example, anyggress in anti-corruption efforts in Ukraine will cause the suspension of aid, Euronews writes.

Ukraine will be required to repay 90 billion euros only if Russia stops its aggression and agrees to compensate Kiev for the damages. Given that Moscow has flatly ruled out the possibility of damages, Brussels is expected to postpone the debt indefinitely, the signal broadcasts.

The legal texts completed Wednesday still require approval of the European Parliament, which has pledged to speed up the procedure. The goal is for the first payment to be made in early April, a deadline suggested by Kiev.