The European Parliament has approved a €90 billion loan package for Ukraine, intended to provide financial support through 2026 and 2027. The funds are earmarked to bolster Ukraine’s defense against the ongoing Russian invasion, with €60 billion specifically designated for defense-related expenditures.
The agreement, reached after intensive discussions among EU member states, includes stipulations regarding the procurement of arms. Ukraine will only be permitted to apply the loan funds to purchase weaponry from countries like the United States if equivalent systems are unavailable or cannot be delivered promptly within the European Union. A separate arrangement is planned for the United Kingdom.
The “Buy European” clause, a key point of contention during negotiations, has been linked to the availability of weapons and ammunition within the EU. This compromise is expected to allow Ukraine to acquire systems like the U.S.-made Patriot air defense system, currently considered irreplaceable for its air defense capabilities. Procurement from countries with a special partnership status will also be permitted if those nations contribute to the costs of the new loan facility, a provision specifically designed to accommodate the United Kingdom.
The European Commission initially proposed the financial support package on January 13, 2026, describing it as “stable, predictable funding” for Ukraine. The European Council had previously agreed on December 19, 2025, to provide the loan, financed through EU borrowing on capital markets.
While the European Parliament’s approval represents a significant step forward, final ratification requires the consent of the Council of the European Union – a process considered largely a formality, as member states have already reached consensus on the loan’s conditions.
