The Verkhovna Rada ratified the agreement with the EU on attracting up to 90 billion euros of aid to Ukraine

On May 28, the Verkhovna Rada adopted the law on ratification of the Loan Agreement to support Ukraine between Ukraine as the borrower, the National Bank of Ukraine as the borrower's agent, and the European Union, represented by the European Commission as the lender.

This concerns draft law No. 0376, which was submitted on May 27 and reviewed on May 28 by the Verkhovna Rada Committee on European Integration. After that, the document was put to a vote in the parliamentary session hall.

298 members of parliament voted for the respective law.

The draft act was developed to ratify Ukraine's international treaties aimed at creating a legal framework for attracting funds within a total amount of up to 90 billion euros, including within the framework of macro-financial assistance under the Loan to support Ukraine.

The Loan Agreement defines detailed technical, financial, and procedural aspects of attracting funds within the total amount of up to 90 billion euros, their allocation to budgetary and defense components, as well as the loan repayment mechanism (exclusively from reparations from the Russian Federation).

The Memorandum of Understanding outlines the general aspects of receiving part of the budget support up to 8.35 billion euros in 2026, including the timing, amount, purpose of assistance, as well as conditions regarding the implementation of policy measures in three components: mobilization of domestic revenues, sustainability and efficiency of public expenditures, and public financial management systems.

The conclusion and subsequent entry into force of the Loan Agreement and the Memorandum of Understanding after their ratification will allow Ukraine in 2026–2027 to attract up to 90 billion euros of financial resources from the European Union to support the state budget and strengthen defense potential.

In particular, under the Memorandum of Understanding, the volume of macro-financial assistance will amount to up to 8.35 billion euros.

The basis for receiving assistance is the mentioned Regulation (EU) No. 2026/467 dated 24.02.2026, which establishes enhanced cooperation for launching the Loan to support Ukraine for 2026–2027 for a total amount of up to 90 billion euros.

Within this instrument, the Implementation Decision of the Council (EU) No. 2026/919 dated 23.04.2026 approving assistance to Ukraine in implementing the Ukraine Financing Strategy positively assessed the Ukraine Financing Strategy for 2026 and determined the total support volume for 2026 at up to 45 billion euros, divided into two key components:

• defense part (up to 28.3 billion euros) – aimed at purchasing weapons and strengthening defense-industrial potential;
• budget part (16.7 billion euros) – aimed at ensuring macro-financial stability and covering the state budget deficit.

At the same time, the even distribution of budget part financing is carried out through two instruments:

• up to 8.35 billion euros is provided directly as macro-financial assistance (which is the subject of the mentioned Memorandum);
• up to 8.35 billion euros – additionally through the Ukraine Facility mechanism.

The financial mechanism of the Loan to support Ukraine instrument is based on the European Commission attracting resources on international capital markets. Using the European Union's highest credit rating (AAA) allows securing financial resources on the most favorable terms. At the same time, the costs of servicing these borrowings (interest) are fully covered by the EU budget, and the principal repayment will be made by Ukraine exclusively after receiving reparations from the Russian Federation.

The respective assistance has the legal status of a long-term concessional loan, but in fact, for the State Budget of Ukraine, it has the character of grant support and will be reflected as state budget revenues.

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