European Union begins 90 billion euro loan disbursements to Ukraine

The European Union has begun disbursing the first tranches of a 90 billion euro loan to Ukraine, with payments starting in June 2026. The loan is divided into 30 billion euros for budget support and 60 billion euros for military assistance.

Questions have arisen regarding the long-term financial burden on EU member states. In response to inquiries from MEP Fabio De Masi, the European Commission stated it cannot currently determine the specific amount member states will need to allocate for interest payments, nor the exact amount of subsidies for capital costs. There is also uncertainty regarding whether this mechanism will be utilized in the 2027 budget cycle.

The loan is intended to be financed through bonds issued on capital markets, with interest costs to be covered by the EU budget. While the European Council has indicated that Ukraine will not be required to repay the loan until Russia pays reparations, the exact source of funds for interest payments remains unclear if current EU funds prove insufficient. The Commission has noted the possibility of mobilizing additional funds beyond existing budgetary ceilings.

Notably, the Czech Republic, Hungary, and Slovakia have declined to participate in the enhanced cooperation mechanism required to mobilize these funds and are excluded from the resulting financial obligations.