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Ukraine to Receive $97 Billion EU Loan Package to Boost Defense and Budget
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![Photo of Dariia Mykhailenko]( "Photo of Dariia Mykhailenko")
The European Parliament has adopted three legislative measures paving the way for an approximately $97 billion EU loan to support Ukraine in 2026 and 2027, as the country continues to resist Russia’s full-scale invasion, according to a statement published on the parliament’s website.
In a vote held on February 11, Members of the European Parliament endorsed what they described as a “package of proposals aimed at supporting Ukraine with a €90 billion ($97 billion) EU loan for 2026 and 2027.” This loan is intended to address Kyiv’s urgent financing needs as Russia’s war of aggression enters its fifth year.
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Of the total amount, $35.7 billion will be allocated for macro-financial assistance and budget support through the EU’s Ukraine Facility. The remaining $71.4 billion will be directed toward strengthening Ukraine’s defense capabilities and financing the procurement of military equipment.
According to Parliament, the funding will ensure “timely access to critical defense products from - in principle - Ukrainian, EU, and European Economic Area/European Free Trade Association defense industries.”
If certain defense materials cannot be sourced quickly enough from those countries for urgent delivery, “a set of targeted derogations will apply to sourcing them from other countries,” the legislation states.
Strong support from the EU 🇪🇺 The @Europarl_EN approved €90B in loans for Ukraine in 2026–2027.€60B will go directly to defense — strengthening our resilience and security. Thank you to the EU and Member States for unwavering solidarity 🇺🇦
— Mykhailo Fedorov (@FedorovMykhailo) February 11, 2026
“All funding will be subject to strict conditions, including Ukraine’s continued commitment to democratic governance, the rule of law, and the protection of human rights, including the rights of minorities. This includes ongoing efforts to combat corruption and strengthen democratic institutions,” the statement added.
In parallel with the EU loan package, Ukraine’s energy sector is set to receive additional international support. Up to $40 million in grant funding from the World Bank will be directed toward restoring damaged energy infrastructure, Minister of Defense Denys Shmyhal said following a call with Anna Bjerde, Managing Director of Operations at the World Bank Group.
According to Shmyhal, the funding will go to Ukraine’s transmission system operator, Ukrenergo, to purchase critical equipment needed to repair and reinforce facilities damaged by Russian strikes.
The announcement comes after a large-scale overnight Russian assault on Ukraine’s energy infrastructure. The attack unfolded in multiple waves, beginning with Shahed-type drones and ballistic missiles, followed by cruise missiles launched from the sea and from strategic bombers. Combined heat and power plants and thermal power stations — many operating primarily to supply heating to cities — were among the main targets.
Earlier, fifteen EU member states announced their intention to allocate a portion of their SAFE defense loan funds to joint procurement initiatives with Ukraine.
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