The European Commission has outlined plans to lend Ukraine €90bn (£78bn), allowing Kyiv to purchase military equipment from non-European suppliers if necessary. The loan, which requires approval from EU member states and the European Parliament, aims to provide €60bn for military spending and €30bn for general budget support, with first tranches expected in April.
Under the proposal, Ukraine must prioritise European and European Economic Area suppliers for military hardware, but exceptions are permitted if equipment is unavailable within these regions. This represents a compromise after France pushed for a stricter 'buy European' clause, which raised concerns about access to US air-defence systems and deep-strike capabilities.
The loan will only be repaid if Russia pays reparations for war damages, a condition championed by Commission President Ursula von der Leyen. She emphasised that the alternative plan to use Russia's frozen assets remains viable, noting that €210bn of Russian assets are frozen indefinitely within the EU.
Payments are contingent on Ukraine's adherence to the rule of law and anti-corruption measures, following a wide-ranging graft investigation that led to the resignation of President Zelenskyy's chief of staff. The loan is backed by 24 EU member states, with Hungary, Czech Republic, and Slovakia declining participation.
