The Verkhovna Rada of Ukraine has made a decision to ratify the agreement with the European Union regarding the attraction of a loan of up to 90 billion euros. The corresponding bill, initiated by President Volodymyr Zelensky, was supported by 298 members of parliament.
This is reported by Finway
Financial support for stability and defense
The agreement provides for substantial financial assistance to Ukraine in 2026–2027. The funds will be directed towards covering the state budget deficit, ensuring macroeconomic stability, and developing the defense industry.
“These funds will be allocated to cover the state budget deficit, ensure macroeconomic stability, and strengthen the defense industrial potential,” commented the parliament’s press service.
The document specifies that Ukraine acts as the borrower, the National Bank serves as the borrowing agent, and the lender is the European Union through the European Commission. The principal amount of the loan, as noted in parliament, is to be repaid exclusively from reparations received from the Russian Federation, while the payment of interest will be covered by the EU budget.
The agreement and its implementation mechanisms
The document came into effect on May 27, 2026, based on a memorandum of understanding between Ukraine and the European Union signed on May 20. In April of this year, the EU Council unanimously approved changes to the EU’s multiannual budget, allowing for the allocation of a loan of 90 billion euros to Ukraine. The twentieth package of sanctions against the Russian Federation was also adopted. The completion of all necessary written procedures was confirmed by Cyprus’s presidency in the EU Council.
It is worth noting that the final approval of the loan was long blocked by the governments of Hungary and Slovakia. After the decision was approved, President Zelensky emphasized that Ukraine expects to receive the first tranche from this financial assistance package as early as May-June.