EU grants Ukraine a loan of 90 billion euros for war effort and state functioning
- The European Union has approved a loan of 90 billion euros to Ukraine on Thursday, April 23.
- This money is intended for the war effort and to ensure the functioning of the state.
- The EU hopes that other allied countries will contribute to cover Ukraine’s needs for the remainder of the year.
An indispensable aid for Ukraine. The European Union has approved the blocking of a loan of 90 billion euros to Kyiv on Thursday, after months of waiting linked, among other things, to a veto by Hungary.
Half of this amount, which is intended to help Ukraine finance its war against Russia for the 2026-2027 period, will be disbursed this year, and the remainder in 2027. Brussels is expected to make the first payments in the coming weeks.
In detail, this loan will be divided into two parts: a first part of 60 billion euros, which is intended to finance the Ukrainian war effort. The money will then be used to purchase military equipment and develop weapon production.
The remaining 30 billion will be used to cover other budgetary needs related to the operation of the country: running schools, hospitals, or even relocating displaced persons. The loan will be subject to conditions, including transparency on the use of funds.
Estimated needs at 137 billion euros
The European Union, which has already provided nearly 200 billion euros in aid to Ukraine in various forms since the start of the war with Russia in 2022, committed to this new loan by the end of 2025 to avoid a country’s bankruptcy, financially drained by the conflict. Especially since the United States had stopped providing financial aid to Ukraine since Donald Trump’s return to the White House in early 2025.
The European Union will have to advance the funds for this loan and will borrow the 90 billion in several installments on the bond market, where companies’ and states’ obligations are exchanged. It now hopes that other allied countries of Ukraine, such as Canada, the United Kingdom, or Japan, will contribute to cover the entire needs of Ukraine, estimated at 137 billion euros for the remainder of the year and the following year.
The vote on this loan was made possible by Hungary lifting its veto, which had set the condition for the resumption of Russian oil deliveries via a pipeline that passes through Ukraine. This pipeline was damaged last January by Russian strikes. Kiev announced on Wednesday the resumption of the pipeline’s operation, ending a situation that had been stagnant for months.
In theory, Kiev will not have to repay this loan from the European Union, which intends to claim the reimbursement of 90 billion euros from Russia for war damages as soon as a peace agreement is reached. To pressure Moscow, the European Union asserts that Russian assets deposited within the EU will remain frozen until Russia repays this money.
