European Commission announces preliminary steps on 90bn euro loan to Ukraine

The European Commission has officially announced the start of preparatory steps for a record €90 billion loan to Ukraine. The funds are intended not only to support the budget, but also to accelerate urgent defence procurement in 2026 and 2027, with a special focus on Ukraine's drone industry, which has shown great potential in recent years, Radio Liberty writes.

Today we are taking the necessary steps to mobilise the current year's budget and defence equipment procurement, focusing on advanced Ukrainian drone technology. This step is our clear signal: the European Commission is ready to act," EU President Ursula von der Leyen stressed.

Marking four years since the tragedy in Bucha, she added that Ukraine's support remains full and resolute.

How the funds will be distributed

According to the press release, of the 90 billion euros, 45 billion is planned to be disbursed as early as 2026, based on a positive assessment of the Financing Strategy presented by Kiev. The remaining half of the loan will be allocated in 2027. The funds will be divided into budgetary support and defence: 16.7 billion euros will be spent on budgetary needs through the Aid Mechanism and macro-financial support, while 28.3 billion euros will be spent on strengthening Ukraine's defence-industrial potential.

The European Commission emphasises that the budgetary aid will be strictly controlled and accompanied by conditions on the rule of law, the fight against corruption and economic sustainability.

Ukraine's ability to defend itself directly depends on the prompt availability of critical goods, including drones, missiles and ammunition," the EU executive body said.

Next, the European Commission's proposal will be sent to the European Council for approval, after which the EU member states will determine the final mechanism for allocating funds for Ukraine for 2026.

Earlier, EU High Representative for Foreign Affairs Kaja Kallas said that the bloc was actively working to remove obstacles to the approval of the 20th package of sanctions against Russia and the granting of a 90bn-euro loan to Ukraine.

Despite the multi-billion euro loan being blocked by Hungarian Prime Minister Viktor Orban, the European Commission chief emphasised: "We will fulfil our promise one way or another".