EU Commission proposes $104B financial support package for Ukraine in 2026–2027

The European Commission on Wednesday unveiled legislative proposals to provide €90 billion ($104 billion) in financial support to Ukraine for 2026 and 2027, reinforcing the EU's commitment to Kyiv amid the ongoing war.

The proposal to amend the Ukraine Facility, a mechanism for budgetary assistance to Ukraine, alongside adjustments to the Multiannual Financial Framework Regulation, would allow the loan to be covered from the EU budget "headroom."

The proposed loan will be divided into two components: €60 billion ($70 billion) for military assistance and €30 billion ($35 billion) for general budget support.

The commission noted that the EU reserves the right to use immobilized Russian assets to repay the loan, in line with EU and international law. A previously proposed reparation loan remains available if co-legislators decide to pursue it.

The support will be financed through common EU borrowing from capital markets, guaranteed by the EU budget "headroom," similar to prior financial assistance programs.

EU Commission President Ursula von der Leyen said in a press conference in Brussels that 24 out of the 27 member states are participating in the package, noting that the funding aims to bolster Ukraine's defense capabilities and maintain state functions and public services.

"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 examination and adoption, with the EU Commission stressing that swift adoption is essential to start disbursements in the second quarter of 2026.

Von der Leyen added that she expected to approve the proposals quickly, enabling the first disbursement to take place in April.

Once approved, the commission will finalize implementing arrangements with Ukrainian authorities and issue the first loan installment.

Conditionality measures, including reforms to strengthen the rule of law and fight corruption, will underpin the financial support under the Ukraine Plan.

Since the start of the Russian war against Ukraine, the EU and its member states have provided €193.3 billion ($225 billion) in support, including €3.7 billion from immobilized Russian assets.