Ukraine will be able to attract up to 90 billion euros in loans from the EU: law on ratification of the agreement signed
President Volodymyr Zelenskyy signed law No. 4892-IX (bill 4892-IX), which ratifies the Loan Agreement between Ukraine and the European Union, allowing the attraction of up to 90 billion euros in financial assistance in 2026–2027.
The attracted funds are planned to be directed to support the macroeconomic stability of the state and strengthen Ukraine's defense potential amid the ongoing armed aggression of the Russian Federation.
As reported by the "Judicial and Legal Newspaper", the Verkhovna Rada on May 28 adopted the law on ratification of the Loan Agreement in support of 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.
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).
We also reported who will actually repay the 90 billion euro EU loan. Article 3 of the Agreement establishes that the loan is a limited recourse loan.
This means that under the main scenario, the loan must be repaid exclusively from war reparations, compensations, or any financial settlement from the Russian Federation. If reparations from Russia are insufficient to fully cover the debt, Ukraine is not responsible for the unpaid portion. The lender (EU) in this case has no right to claim other assets of Ukraine.
As security for the fulfillment of obligations, Ukraine grants the EU a security interest regarding its claim against Russia for the payment of reparations. In other words, Ukraine pledges to the European Union its future payments from the aggressor. Articles 11 and 13 of the Agreement define the conditions under which the limited recourse right ceases to apply. In such cases, Ukraine is obliged to repay the funds from its own budget.
The loan to support Ukraine must be provided by December 31, 2027, and the payment of all tranches must be completed no later than 2028.
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