The funds will be directed to budget support and the development of the defense industry
The European Commission has officially submitted a proposal to the Council of the European Union to provide Ukraine with a macro-financial loan worth 45 billion euros. These funds are set to become a key component of the financial support package planned for 2026–2027. This was reported by Delo.ua citing European Commission, according to the portal PromPolitInform.
The total support package for Ukraine for the designated two-year period is planned at 90 billion euros. The new initiative by the EU executive body aims to provide funding for government services and address the needs of the security and defense sectors.
Details of Aid Allocation
The initiative is based on the Financing Strategy formally submitted by the Ukrainian side on October 26, 2026. Disbursements are scheduled through the end of 2027 and are to be channeled into two main areas.
A significant portion of the resources, specifically 31.7 billion euros, is earmarked for building and strengthening Ukraine’s domestic defense capabilities. The remaining amount, up to 13.3 billion euros, will be allocated for general budget support, distributed between macro-financial programs and the Ukraine Facility instrument.
Recipient Requirements
European Commission President Ursula von der Leyen emphasized that the proposed mechanism is designed to ensure the predictability of financial inflows for Ukraine. Stable functioning of all government institutions remains a vital aspect during the ongoing martial law conditions.
Loan conditions include strict requirements regarding the rule of law and anti-corruption measures. The European Union has implemented special safeguard mechanisms to protect the financial interests of the European community throughout the program’s implementation.
Next Steps
Once the Council of the European Union officially approves the proposal, member states must agree on the final distribution of tranches. Should the vote be successful, the European Commission plans to initiate disbursements as early as the beginning of 2027.
Simultaneously, European institutions are working on addressing the overall funding deficit for Ukraine, currently estimated at 70 billion euros. Brussels stresses the need for continued mobilization of efforts by all international partners to fulfill these commitments.
Photo: Delo.ua
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