EU Approves €90 Billion Loan to Ukraine and New Sanctions on Russia

The European Union has approved a €90 billion loan package for Ukraine alongside a 20th sanctions package targeting Russia.

This decision was made unanimously by EU member states on 23 April 2026, following the lifting of a veto by Hungary.

The loan is intended to be disbursed over two years, with the first payments expected by June at the latest.

Approximately €60 billion of the loan is allocated for military support, while the remaining €30 billion is designated to help stabilize Ukraine's budget.

Ukraine's President Volodymyr Zelensky stated that the funds will strengthen the Ukrainian army, enhance resilience, and support social obligations.

The loan will be financed through EU borrowing on capital markets and backed by the EU's long-term budget.

Hungary, Slovakia, and the Czech Republic are exempt from contributing to the loan repayments if Russia fails to pay reparations.

The European Commission has indicated that no repayment timeline has been set, with the working assumption that Russia should cover the damages caused in Ukraine.

The loan package includes €45 billion planned for 2026 and another €45 billion reserved for 2027, subject to revision if necessary.

The 2026 tranche is further divided into €16.7 billion for budget support and €28.3 billion for defense, with budget support split equally between the Ukraine Facility and macro-financial assistance.

The macro-financial assistance will be paid out in three instalments over the year.

The sanctions package targets Russia's war economy and was adopted alongside the loan agreement.

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