The European Parliament voted 499 to 135, with 24 abstentions, on 21 January to let 24 European Union member states push ahead with a €90 billion ($105 billion) loan to Ukraine—bypassing Hungary, Slovakia, and Czechia, which refused to participate.
The fast-track vote clears one hurdle; the final decision comes in February. But the Commission is already racing to get money flowing by April.
Parliament and the Council must now hammer out the final text before funds can move.
Economy Commissioner Valdis Dombrovskis called Ukraine’s financing needs “sizeable and urgent” when the proposal was launched on 14 January. “That’s why we are aiming indeed to start with disbursing in April,” he said.
The package uses the EU’s “enhanced cooperation” mechanism—a workaround that lets willing countries act when unanimity fails. The 24 participating states shoulder the loan’s obligations; Hungary, Slovakia, and Czechia bear no financial risk but also have no say. Parliament and the Council must now hammer out the final text before funds can move.
What the money buys
Two-thirds of the loan—€60 billion ($70 billion)—goes to weapons, with a “Buy European” clause pushing Ukraine to purchase from EU manufacturers. Non-European suppliers are allowed only when European industry can’t deliver the equipment or can’t deliver it fast enough. The requirement serves a dual purpose: arming Ukraine while boosting the EU’s own defense industrial base.
The remaining €30 billion ($35 billion) covers budget support, tied to anti-corruption reforms. The IMF estimates Ukraine needs €137 billion ($159 billion) for 2026-2027; the EU package covers roughly two-thirds of that gap.
Ukraine’s military budget sits at roughly 43% of what Russia spends on the war.
Ukraine only repays if Russia pays war reparations. Until then, €210 billion ($244 billion) in frozen Russian assets stay locked in EU banks—implicit collateral that the bloc reserves the right to seize.
But analysts warn that the money keeps Ukraine in the fight without changing the war’s trajectory. The German Marshall Fund notes the package “will sustain Kyiv financially, including its defense effort, but will not be sufficient for a war-ending strategy.” Ukraine’s military budget sits at roughly 43% of what Russia spends on the war.
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Europe steps up
The loan marks Europe’s largest single commitment to Ukraine since the full-scale invasion began. “Ukraine must be in a position of strength—on the battlefield and at the negotiating table,” Commission President Ursula von der Leyen said on 14 January.
Since February 2022, the EU and its member states have provided €193.3 billion ($225 billion) in total support—more than any other donor. With Washington’s commitment uncertain under the new US administration, Brussels is betting that Europe can carry the load.
