EU Commission proposes lending Ukraine a further €45 billion in 2027, €31.7 billion of it for defence

Ukraine is to receive a further €45 billion from the EU next year. On 30 October 2026 in Brussels, the European Commission proposed providing the country with the remaining amount of the Ukraine Support Loan, which totals €90 billion for 2026 and 2027. It had first given a positive assessment to the financing strategy Ukraine submitted on 26 October. The proposal, an implementing decision, now goes to the member states in the Council.

With today's proposal, we are providing Ukraine with much-needed predictability and helping maintain essential public services.

Valdis Dombrovskis, the Commissioner for Economy and Productivity, called the support more than an act of solidarity: an existential investment in a stronger and safer Europe.

What the money is for

The largest part, €31.7 billion, is earmarked by the Commission for Ukraine's defence industrial capacity. Up to €13.3 billion is for budget support, half of it through the Ukraine Facility and half as macro-financial assistance. This part of the loan is meant to keep the state functioning and maintain its essential public services. The budget support is tied to conditions on matters including the rule of law, anti-corruption efforts, economic resilience and sustainability. The money is to be provided by 31 December 2027; the Commission aims to make the first disbursements possible in early 2027, once the Council has decided.

Andrius Kubilius, the Commissioner for Defence and Space, said Ukraine urgently needed drone interceptors, ammunition, missiles and radars for its air defence, and that the EU would keep working to speed up production and deliver on time from the European defence industry. On the basis of the proposal, the member states in the Council will decide how the money is allocated between the Ukraine Facility, macro-financial assistance and defence industrial capacity.

What has been paid out in 2026

For 2026 the Council approved up to €45 billion on 23 April, of which €16.7 billion was budget support and €28.3 billion was for defence industrial capacity. According to the Commission, €19.8 billion of this has been paid out so far: €15.8 billion for defence procurement, €3.2 billion as macro-financial assistance and €800 million through the Ukraine Facility, after Ukraine had completed agreed reforms.

How the loan is financed

EU leaders agreed on the €90 billion in December 2025, and the European Parliament and the Council adopted the regulation in February 2026. The agreement was reached through enhanced cooperation, which allows member states to move ahead together in one area when the EU as a whole cannot achieve the goal within a reasonable period. The loan is financed through common EU borrowing on the capital markets and guaranteed by the headroom in the EU budget, as other financial assistance to Ukraine has been since 2023. The EU has also kept open the option of repaying it with Russian assets immobilised in the Union.

The Commission said in January that, on the International Monetary Fund's assessment, the package would meet two thirds of what Ukraine needs to finance in 2026 and 2027. The Commission puts the total support that the EU and its member states have given Ukraine since Russia's war of aggression began at €231.6 billion, €3.8 billion of it from the proceeds of immobilised Russian assets.