Europe New EU loan for Ukraine is primarily intended to strengthen the military
According to the European Commission, a large part of the huge new EU loan for Ukraine is to benefit the armed forces fighting against Russia.
14.01.2026, 15:19
SDA
According to a proposal presented by Commission President Ursula von der Leyen, the Ukrainian military is to be supported with 60 billion euros (around 55.9 billion Swiss francs).
The remaining 30 billion euros of the total 90 billion euro loan are to be made available to Ukraine as budgetary support, according to the Brussels authority's proposal.
The support will ensure that Ukraine can strengthen its defense on the battlefield and expand its military capabilities on the one hand and maintain the state and basic public services on the other, said von der Leyen.
Loan already agreed beforehand
The EU Commission's concrete proposal was preceded by an agreement between the heads of state and government of the member states on financing Ukraine for the next two years. At a summit meeting shortly before Christmas, after months of dispute, they had agreed on a compromise to give Ukraine an interest-free loan of 90 billion euros for 2026 and 2027.
The agreement also provides for Russian assets frozen in the EU to be used for repayment if Moscow does not pay compensation for war damage.
Armaments to be purchased in Europe
The money for the armed forces is to be used to purchase military equipment in Ukraine, EU member states, Iceland, Liechtenstein and Norway, according to von der Leyen. The background to this is that the domestic arms industry in particular is to be strengthened.
However, the German Christian Democrat added that procurement from other countries should also be permitted under certain circumstances. "In principle, a European preference applies, according to a cascade principle: priority for Europe, and if this is not possible, procurement abroad," said von der Leyen.
It is now eagerly awaited whether the so-called Buy European clause will find the necessary majority among the member states. There have already been heated discussions on the subject in recent weeks. Countries such as the Netherlands have called for the greatest possible flexibility in order to be able to support Ukraine as much as possible.
France in particular, on the other hand, does not want to accept large amounts of EU money being spent on the purchase of US weapons. Paris argues that strengthening the European defense industry is strategically necessary for the EU. Germany recently campaigned for an approach that is reminiscent of the Commission proposal that has now been presented.
The issue is also explosive because Germany and other NATO states are actually supposed to buy US weapons and ammunition for Ukraine for at least one billion US dollars per month this year. The countries agreed to this last summer in order to meet the demands of US President Donald Trump.
It is about the acquisition of crucial equipment, including interceptor missiles for air defense systems, but also offensive systems, explained NATO Secretary General Mark Rutte in December at a meeting with the foreign ministers of the alliance states in Brussels. A total of around 15 billion US dollars could be needed.
Budget money linked to conditions
The 30 billion euro loan for Ukraine's budget is also subject to conditions. Kiev will have to implement reforms, as the Commission President said. "These include commitments to strong democratic processes, the rule of law and the fight against corruption. These conditions are non-negotiable for any financial support." According to her, the reforms should also bring the country closer to EU membership.
Before money can flow into Ukraine, the European Parliament and the EU countries still have to give their approval. Von der Leyen said she was counting on the swift approval of both institutions "so that we can make the first disbursement as early as April".
Other financing model discussed for a long time
Before the EU heads of state and government agreed on the loan, a financing model had been discussed for months, according to which funds from the Russian central bank, mainly fixed in Belgium, were to be used directly for loans to Ukraine of up to 210 billion euros.
German Chancellor Friedrich Merz in particular was an advocate of the project, which was called the reparations loan. This plan ultimately failed due to opposition from countries such as France and Italy, after Belgium in particular had previously considered the legal and political risks to be too great.
The plan now is to borrow the money on the capital market at favorable conditions and then pass it on to Ukraine. It is to be secured via the EU's common budget. However, Hungary, the Czech Republic and Slovakia have negotiated not to contribute to the costs.
At the same time, von der Leyen emphasized in Brussels that the proposal for a reparations loan remains on the table. "It is important for us to remind Russia unequivocally that we reserve the right to use the immobilized Russian assets," she said a few weeks before the fourth anniversary of Russia's attack on Ukraine.
