EU’s €90 Billion Aid Package Signed Into Law by Ukrainian President

Macro-Financial Assistance from the European Union

According to Главком: Ukrainian President Volodymyr Zelenskyy has officially enacted a law ratifying an agreement that unlocks up to €90 billion in macro-financial support from the European Union. These funds will be split between defense and budgetary allocations, with €28.3 billion earmarked for defense and €16.7 billion for the budget specifically in 2026. Loan repayment is tied to reparations from the Russian Federation, while interest payments will be covered by the EU budget.

Under the terms of the deal, total financial assistance for 2026 is set at up to €45 billion. The budgetary portion will be channeled through two mechanisms: macro-financial assistance and the Ukraine Facility, each providing up to €8.35 billion. Aid will be disbursed in three grants, with estimated values as follows:

• First tranche – €3.2 billion,
• Second tranche – €3.7 billion,
• Third tranche – €1.45 billion.

On May 28, Ukraine’s parliament, the Verkhovna Rada, ratified the €90 billion loan agreement with the EU, with 298 lawmakers voting in favor. The first installment of military aid under this credit will be used to purchase Ukrainian-made drones. The EU’s financial assistance, totaling up to €90 billion, is expected to be disbursed over 2026–2027, providing a significant boost to Ukraine’s economic stability amid the ongoing crisis.

Why Ratification Matters

Ratifying this agreement with the European Union marks a pivotal step for Ukraine, securing essential financial resources during a time of war and economic turbulence. The planned allocations for defense and the budget are poised to strengthen the country’s ability to safeguard its security and sustain socio-economic progress. Moreover, receiving part of the aid as grants helps reduce the national debt burden-a critical advantage in wartime conditions.

As Ukraine navigates the complexities of securing vital funding, the recent submission of the €90 billion loan agreement to parliament highlights the urgency of this financial support. To understand the implications of this legislative move and the strategic importance of these funds, you can read more about the initial agreement proposed by President Zelenskyy.