EU Readies €90 Billion Loan for Ukraine, with Payouts Set for 2026

EU Loan Package for Ukraine

According to Главком: The European Union is preparing a €90 billion loan for Ukraine, with the first disbursements scheduled for early April 2026. The approval of the necessary legal acts to implement this program, however, is being delayed due to objections from Hungary. The EU Council is set to vote on the two legislative acts concerning the loan at its meeting on February 24. This substantial financial package is part of the EU's broader, long-term commitment to support Ukraine's economy and reconstruction.

Hungary, which along with Slovakia and the Czech Republic is not participating in the direct financing of this loan, is currently blocking the required amendments to the EU's multiannual financial framework for 2021–2027. In December of last year, all EU leaders, including Hungarian Prime Minister Viktor Orbán, agreed in principle to support the loan for Ukraine. Despite this political agreement, Hungary is now obstructing the subsequent steps needed to finalize the program's approval.

Political Unity and Support for Ukraine

As noted by Valdis Dombrovskis,

“First, what will happen tomorrow: tomorrow will see the finalization of the Regulation on the loan to support Ukraine, and this process is on track.”

He also emphasized that

“this will allow us to work on the further documents needed to grant the loan to Ukraine, including the funding strategy for this year.”

The final decision on the loan, however, requires the unanimous consent of all 27 EU member states.

The Council of Europe has scheduled a special meeting at the ambassadorial level for February 24, dedicated to the consequences of the Russian Federation's aggression against Ukraine. This meeting is expected to be a crucial step toward aligning the necessary decisions for implementing the loan program.

The delays in the loan process caused by Hungary's blockade underscore the critical importance of political unity among EU member states in supporting Ukraine amid Russia's ongoing war. If the legislative acts are successfully adopted, the loan could become a vital financial resource for Ukraine's recovery and economic stabilization, which is a key factor in the EU's continued backing of the country.