The EU ambassadors agreed on the provision of 90 billion euros to Ukraine: third countries will be able to join the loan

On Wednesday, February 4, the ambassadors of the European Union states agreed on the mechanisms for providing Ukraine with a loan in the amount of 90 billion euros in 2026-27, in particular, allowing third countries to participate in this process.

Source: “European Truth” with reference to the Cypriot Presidency of the Council of the EU.

Details: It is reported that EU ambassadors have agreed on the mechanisms for providing Ukraine with a loan of 90 billion euros in 2026-27 at a meeting of the Committee of Permanent Representatives (Coreper).

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Literally: “The mandate of the EU Council provides that third countries, except for Ukraine or members of the European Free Trade Association/European Economic Area (Iceland, Liechtenstein, Norway, Switzerland – “EU”), may be directly involved in the Ukraine Support Loan for specific defense products.”

Details: In general, it is assumed that defense products should be purchased only from companies from the EU, Ukraine or EFTA/EEA countries.

“If the military needs of Ukraine require the urgent supply of defense products that are not available in the EU, Ukraine or the EFTA-EEA country, a number of targeted exceptions will be applied,” the interlocutors of “EP” clarified.

In particular, countries that have concluded a bilateral agreement with the Union in accordance with the SAFE Regulation, as well as countries that have entered into a security and defense partnership with the EU, will be able to participate in the use of funds from the Ukrainian loan.

“In particular, such countries must undertake to provide a fair and proportionate financial contribution to cover the costs arising from borrowing, and which provide significant financial and military support to Ukraine,” the Cyprus Presidency explained.

Now the draft laws approved by the EU ambassadors must be submitted to the European Parliament for agreement and approval.

It is about the regulation that implements the loan; regulation amending the financial instrument for Ukraine (Ukraine Facility); as well as amending the current Multiannual Financial Framework (MFF) regulation to guarantee financial assistance within the EU budget.

“After the completion of all steps, the Commission will be able to pay the first tranche at the beginning of the second quarter of this year,” the Cyprus Presidency assured.

Prehistory:

• France and Germany had conflicting positions regarding the mechanisms for providing credit to Ukraine and the participation of third countries in it.
• We will remind you that on the night of December 19, the summit of the European Union approved a decision on joint borrowing for Ukraine in the amount of EUR 90 billion.
• The decision was made after the EU refused the option of a “reparation loan” in connection with the opposition of Belgium, on whose territory most of the Russian assets frozen in Europe are located.
• Hungary, Slovakia and the Czech Republic refused to participate in this scheme.
• On January 21, the European Parliament approved a proposal for a decision of the Council of the EU, which allows the creation of a Loan for Ukraine in the amount of EUR 90 billion for 2026-2027.

Know more: Action plan for 90 billion euros: how the EU is preparing aid to Ukraine and what it will demand from Kyiv

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