EU plans €90 billion in loans for Ukraine, with most funds for military support

Yahoo
Yahoo
20m ago
European Commission President Ursula von der Leyen unveiled plans for the European Union to support Ukraine with €90 billion over two years, including €60 billion for military support and €30 billion for budget needs tied to reforms.
EU plans €90 billion in loans for Ukraine, with most funds for military support
A What happened
European Commission President Ursula von der Leyen unveiled details of an EU plan to support Ukraine with €90 billion over the next two years, including €60 billion to bolster the military. Ukraine must spend the military funds on Ukrainian- and European-built equipment, with purchases from abroad allowed if needed equipment is not available in Europe. The remaining €30 billion is intended for Kiev’s budgetary needs and is tied to reforms on democracy, rule of law, and anti-corruption measures. EU leaders endorsed the funding plans in December, and the European Commission said the EU reserves the right to use immobilized Russian assets in the Union to repay the loan in accordance with EU and international law.

Key insights

  • 1

    Military funding is designed to support European defense industry integration: Von der Leyen said the military assistance can help Ukraine stand strong against Russia and integrate more closely into Europe’s defence industrial base.

  • 2

    Financial support is explicitly conditioned on governance reforms: Von der Leyen said the reform conditions tied to the €30 billion budget support are non-negotiable for any financial support and are meant to keep Ukraine moving on its EU accession path.

  • 3

    Repayment structure is linked to potential reparations and frozen assets: Dombrovskis said Ukraine would repay the loan only if it receives reparations from Russia, and the commission said the EU reserves the right to use immobilized Russian assets in the Union to repay the loan in accordance with EU and international law.

Takeaways

The European Commission is advancing a €90 billion EU support package for Ukraine that prioritizes military funding, conditions budget support on reforms, and keeps the option of using immobilized Russian assets for repayment.

Topics

Business & Markets Economy World & Politics Policy & Regulation International Affairs Security & Defense

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