On April 23, the European Council approved a €90 billion loan for Ukraine, with repayments expected to be funded through reparations from Russia.
The loan will be financed via capital market borrowings and secured by reserves from the European budget, according to amendments adopted today to EU regulations.
It has been emphasized that the repayment of the loan will occur through reparations that Russia is obligated to pay to Ukraine.
“Payments will commence as soon as possible, providing vital support for Ukraine’s most urgent budgetary needs. The EU remains steadfast in its support for Ukraine’s sovereignty and territorial integrity,” stated Makis Keravnos, Finance Minister of Cyprus.
President of the Euro Council, António Costa, announced that the funds will be allocated for several key areas:
- Domestic weapons production;
- Purchasing weapons from partners that Ukraine does not yet manufacture;
- Preparing energy and critical infrastructure for the upcoming winter;
- Meeting social obligations to citizens.
Costa also noted that, in addition to the loan for Ukraine, the EU has approved a 20th package of sanctions against Russia aimed at diminishing its capacity to continue the war.
The European Council has approved a substantial loan for Ukraine, aimed at bolstering its defense and infrastructure needs. The funding will be backed by future reparations from Russia, alongside new sanctions targeting Russian capabilities.