European Parliament approves 90 billion euro loan to Ukraine
The European Parliament voted to approve a 90-billion-euro ($107 billion) loan to Ukraine, securing a large chunk of the country's budgetary and military needs for the next two years as Russia's war approaches its fourth anniversary.
Agreed by European leaders on Dec. 19, today's vote is the penultimate step in the approval process of the loan. The European Council is now expected to formally sign off on the agreement, allowing payments to start flowing to Ukraine in April.
Ukraine's annual budget deficit has floated around 20% of its gross domestic product since Russia invaded in 2022, driven by higher defense spending. Kyiv relies on continuous cash injections from abroad to support its war effort and keep the state afloat.
The so-called Ukraine Support Loan covers two-thirds of Ukraine's needs for 2026–2027, and earmarks 30 billion euros ($36 billion) for budget support and 60 billion euros ($71 billion) for military needs. Without these funds, Ukraine would have run out of cash by mid-2026.
It is the first time that the European Union will directly spend such a large sum on defense. A key goal of the funding is to more tightly integrate Ukraine's battle-hardened military industrial base with the EU's.
"(The loan) will help Ukraine strengthen its defense capabilities, ensure the uninterrupted operation of public services, and contribute to the country’s resilience and closer integration with Europe’s defense-industrial base," Ukraine's Finance Minister Serhii Marchenko said in reaction to the vote.
"I am grateful to the European institutions for ensuring a swift legislative process, which we hope will allow Ukraine to receive the funds as early as April."
The parliamentary vote comes as Ukraine's Defense Minister Mykhailo Fedorov attends a summit of EU defense ministers in Brussels on Feb. 11, where discussions will center around cooperation in defense innovation.
The loan was approved with 458 votes in favor, 140 against, and 44 abstentions.
