On April 1, the European Commission announced its intention to provide Ukraine with a €90 billion loan aimed at bolstering the country’s budgetary support and accelerating urgent defense procurements for the years 2026 and 2027.
The proposed package includes a recommendation to the Council for the approval of the total EU support for Ukraine in 2026, along with a decision to allow exemptions from procurement rules for the initial list of defense products, particularly focusing on drones.
European Commission President Ursula von der Leyen emphasized the bloc’s commitment to fulfilling its earlier pledge of a €90 billion loan to Ukraine. “Today, we are taking the necessary preparatory steps to mobilize this year’s budget and procure defense equipment, with a focus on Ukraine’s advanced drone industry. This sends a clear signal: the Commission is ready to move forward. Marking four years since the Bucha massacre, we stand fully and resolutely with the brave people of Ukraine in their fight for freedom,” she stated.
According to the Commission’s press service, €45 billion is proposed for Ukraine’s support in 2026, based on a positive assessment of Ukraine’s financing strategy submitted on March 24. The remaining portion of the €90 billion loan is scheduled for the following year.
Once the Council approves the financial assistance, the Commission plans to expedite the first tranche to Ukraine. This initiative complements contributions from international donors and addresses Ukraine’s external financing deficit and defense needs.
The proposal also outlines a division between defense procurements and budgetary support, with budgetary assistance reaching €16.7 billion, equally distributed between the Ukraine Support Mechanism and macro-financial assistance. Meanwhile, the support for Ukraine’s defense industrial capacity is set at €28.3 billion.
It is expected that budgetary support will be “underpinned by strict conditions related to the rule of law, anti-corruption measures, economic resilience, and sustainability.”
The European Commission highlighted that Ukraine’s ability to defend itself hinges on the timely availability of critical products in sufficient quantities. Therefore, the Commission has allowed Ukraine to utilize exemptions for drone procurements. “This will facilitate preparations for the first urgent defense procurements under this instrument, with additional lists of items for other defense products, including missiles and ammunition, to be added in the coming months,” it stated.
The European Commission will submit its proposal for approval by the European Council, which will determine the distribution of support under the loan for Ukraine in 2026, including through the Ukraine Support Mechanism, macro-financial assistance, and defense procurements.
Recently, EU’s High Representative for Foreign Affairs, Josep Borrell, indicated that the EU is working to overcome obstacles in approving the 20th sanctions package against Russia and in providing Ukraine with the €90 billion loan at the upcoming European Council meeting.
During a summit on March 19, EU leaders did not finalize the multi-billion euro loan for Ukraine, which was blocked by Hungarian Prime Minister Viktor Orbán. Despite facing criticism, Orbán maintained that Ukraine must first resume the transport of Russian oil through the Druzhba pipeline.
However, despite the ongoing blockage of the multi-billion euro loan, Ursula von der Leyen reiterated that “we will fulfill our promise one way or another.”
The European Commission has proposed a €90 billion loan to support Ukraine's defense and budgetary needs for 2026 and 2027. The initiative emphasizes the urgency of defense procurements, particularly in the drone sector, amidst ongoing geopolitical tensions.