Ratification of the EU Agreement
On May 28, Ukraine's Verkhovna Rada ratified a landmark agreement with the European Union for a €90 billion loan, scheduled for disbursement in 2026–2027. The bill passed with 298 votes in favor. These funds are designated to cover the state budget deficit, maintain macroeconomic stability, and strengthen the country's defense-industrial capabilities.
Repayment of the principal amount will come exclusively from reparations paid by the Russian Federation, while interest costs will be covered by the EU budget. President Volodymyr Zelenskyy submitted the ratification bill to parliament on May 28. The day before, the EU Council formally approved the loan and also adopted its 20th package of sanctions against Russia.
First Tranche Expected Soon
The initial tranche is anticipated in May or June and will be used to purchase domestically produced drones. Parliamentary representatives noted that
“this document enables Ukraine to secure up to €90 billion in EU financial assistance during 2026–2027. These resources will be allocated to covering the state budget deficit, ensuring macroeconomic stability, and boosting the defense-industrial sector.”
This agreement marks a crucial step in sustaining Ukraine's economic stability amid wartime pressures and financial challenges. The substantial EU loan underscores continued international support for Ukraine, which could aid economic recovery and enhance national defense capabilities. Notably, the repayment terms—tied to Russian reparations—may shape Ukraine's future relations with global partners and influence post-war reconstruction efforts.
Source: Glavcom, citing the live broadcast of the parliamentary session.
As the Ukrainian government prepares for the initial disbursement of these crucial funds, further details have emerged regarding the timing and utilization of the first tranche. Reports suggest that the EU is poised to release the first €90 billion installment as early as next week, which will be pivotal for supporting Ukraine's defense needs. For more insights on this upcoming financial support, read about the expected release of the first tranche.