The European Commission approved a loan to Ukraine of €90 billion

According to the European Commission's proposal, two-thirds of the funds will be allocated for military assistance to Ukraine, while the rest will be for investments in the context of reforms. The interest-free loan was agreed upon at the EU summit in December.

The European Commission presented a draft legislative measure to provide Ukraine with an interest-free loan of €90 billion, agreed upon at the EU summit in December. The agency proposes to allocate a third of this amount for budget support to Kyiv, while the remaining €60 billion will be directed towards military assistance, said European Commission President Ursula von der Leyen at a press conference in Brussels on Wednesday, January 14.

Weapons will be purchased primarily in Ukraine, the EU, and the EEA

According to her, military expenditures should be distributed according to a so-called "cascade system." At the first stage, it will be checked whether the necessary weapons are available in Ukraine, the EU, or one of the countries of the European Economic Area (EEA). If such supplies are not possible, weapons will be purchased from third countries, such as the USA.

The package of assistance to Ukraine's state budget amounting to €30 billion is intended to support Kyiv in "advancing reforms and modernizing the country," the head of the European Commission reported. These investments will be tied to reforms, "including in the context of Ukraine's approach to EU membership," she added.

"We are taking the next step in our support for building a stronger and more stable Ukraine," von der Leyen said. The EC proposal stipulates that the first tranche should be paid to Kyiv at the beginning of April. Now the plan must be approved by the European Parliament and the EU Council.

EU countries decided to provide Kyiv with a loan of €90 billion

At the EU summit in mid-December, a decision was made to provide Ukraine with funding of €90 billion in 2026-2027. As explained after the summit by German Chancellor Friedrich Merz, Ukraine will only have to repay this loan after Russia compensates Kyiv for the damages caused by the war. If Moscow refuses to compensate for the damages, the EU will use frozen Russian assets to repay Ukraine's debt, the chancellor said.

At the same time, two options for supporting Ukraine were considered at the summit, which has been defending itself against Russia's full-scale invasion for almost four years. One of the options involved the use of frozen Russian assets.