EU pledges major financial support to Ukraine amid war
The legislative proposals aim to amend the Ukraine Facility, the mechanism for budgetary support, along with adjustments to the Multiannual Financial Framework Regulation, allowing the loan to be covered through EU budget “headroom.”
The proposed funding is divided into two segments: €60 billion ($70 billion) for military support and €30 billion ($35 billion) for general budgetary assistance. The commission also indicated that immobilized Russian assets could potentially be used to repay the loan, consistent with EU and international law. A previously proposed reparation loan remains available if policymakers opt to implement it.
The package will be financed via joint EU borrowing in capital markets, guaranteed by the EU budget “headroom,” similar to earlier aid initiatives.
EU Commission President Ursula von der Leyen said during a Brussels press conference that 24 of the 27 member states are participating in the program. She emphasized that the funds will help Ukraine sustain public services and strengthen its defense capabilities.
“The funds will be used to purchase equipment, mainly from Ukraine, from the European Union and the EEA/EFTA countries. But if these necessary procurements are not possible in this region and or in due time, then it might also occasionally be possible to acquire the equipment outside the European Union,” she said.
The proposals have been submitted to the European Parliament and EU Council for review and approval, with the commission stressing that timely adoption is critical to begin disbursements in the second quarter of 2026.
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