Draft Law Seeks Approval of Landmark EU Financial Pact
Ukrainian President Volodymyr Zelenskyy has formally submitted a draft law to the Verkhovna Rada seeking ratification of a €90 billion loan agreement with the European Union. This deal is designed to unlock financing for Ukraine in 2026–2027, marking a crucial step in supporting the country’s recovery and ensuring economic stability amid ongoing challenges.
The loan agreement was signed on May 27, 2026, in both Brussels and Kyiv. Additionally, a related memorandum of understanding was signed on May 20, 2026, in Brussels and on May 27, 2026, in Kyiv. Under this memorandum, up to €8.35 billion is allocated as macro-financial assistance. According to EU Council Implementing Decision No. 2026/919, adopted on April 23, 2026, total support for 2026 is set at up to €45 billion.
Defense and Budgetary Support Breakdown
Under the plan, the defense component of support for 2026 will reach up to €28.3 billion, earmarked for weapons procurement and strengthening the defense-industrial base. The budgetary portion will total €16.7 billion, aimed at ensuring macro-financial stability and covering the state budget deficit. Part of this budgetary aid—up to €8.35 billion—is provided directly as macro-financial assistance, as well as through the Ukraine Facility mechanism.
The EU Council has already approved the €90 billion loan for Ukraine and adopted the 20th package of sanctions against Russia. President Zelenskyy has indicated that Ukraine is working to make the first tranche of this support package available as early as May–June. The initial military aid installment under the €90 billion EU loan will be directed toward purchasing Ukrainian-made drones.
The draft law is intended to bring the loan agreement into force, under which Ukraine acts as the borrower, the National Bank of Ukraine as the borrower’s agent, and the European Union, represented by the European Commission, as the lender. This agreement represents a significant milestone in financial support for Ukraine amid the current situation in the country.
This agreement with the European Union is critically important for Ukraine given the current financial instability and the need for resources to rebuild infrastructure and the economy. Securing substantial funds through this loan will allow Ukraine not only to sustain defense spending but also to maintain socio-economic stability. Expectations for the first tranche also highlight the intensification of international support, which plays a key role in restoring Ukrainian statehood and the economy.
As the ratification process unfolds, it's important to note that the EU is finalizing the loan terms for Ukraine, which will further clarify the financial framework supporting the country's recovery efforts. This agreement is pivotal not only for immediate economic stability but also for long-term strategic partnerships with European allies.