EU lays out 45 billion euro spending plan for Ukraine in 2027
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The European Commission on Oct. 30 unveiled plans on how to disburse about 45 billion euros ($51 billion) next year under its Ukraine Support Loan, with the vast majority allocated to defense.
Roughly 31.7 billion euros ($35 billion) have been earmarked to support Ukraine's defense industrial capacity, according to the Commission's press release.
The rest — 13.3 billion euros ($14.8 billion) — would be split equally between two financial support mechanisms for Ukraine: the Ukraine Facility and the Macro-Financial Assistance, with the latter tied to the International Monetary Fund (IMF) support program.
Despite the loan, Kyiv still needs to bridge its estimated 70 billion euros ($78 billion) budget gap next year, as economic pressures of Russia's war mount.
"With today's proposal, we are providing Ukraine with much-needed predictability and helping maintain essential public services," European Commission President Ursula von der Leyen said, adding that the topic is "high on the agenda" at the EU-Canada summit in Montreal.
"Together with our allies, we must also do everything in our power to mount pressure on Russia to stop its barbaric war of aggression."
The European Commission stressed that the budgetary support remains tied to conditions related to Ukraine's rule of law and anti-corruption reforms, as well as economic resilience and sustainability.
The Commission's proposal must now be approved and adopted by the Council of the EU, with member states making a final decision on the allocation of funds afterward.
The 45-billion-euro package is the second part of the EU's 90-billion-euro ($100 billion) loan approved in April, two-thirds of which is allocated for defense.
The first half of the loan, which is being disbursed throughout 2026, included 16.7 billion euros ($18.6 billion) in budget support and 28.3 billion euros ($31.6 billion) for defense industrial capacity.
As the loan does not cover all of Ukraine's needs for next year, Kyiv has already requested additional funding beyond the 90-billion-euro package.
Meanwhile, Kyiv's other partners are beginning to step up. In October, Norway pledged $9 billion for Ukraine, and the U.K. announced a $13 billion pledge, its largest ever.
Canada is also widely expected to join in, though the scope of its potential commitment remains unclear.
