Financial sector news

After lengthy negotiations that ended on the night of December 19, European Union leaders reached a consensus on financing Ukraine. European partners decided to provide Ukraine with €90 billion in support for 2026–2027. The loan will be secured by the EU's budget reserve, rather than frozen Russian assets, as previously planned. It has been agreed to finance Ukraine through EU borrowing on capital markets.

This was announced by European Council President António Costa. "We have an agreement. The decision to provide €90 billion in support to Ukraine for 2026-27 has been approved. We made a commitment, and we delivered," Costa wrote on social media.

The first tranche of the loan is expected in the second quarter of 2026.
The uniqueness of this loan lies in its repayment terms. Ukraine will only have to repay its loan obligations after Russia pays reparations. The Russian Federation's assets will remain frozen. If Moscow refuses to pay voluntarily (which is the most likely scenario), the EU reserves the right to use the frozen assets to repay this debt in the future.

The €90 billion agreement was not unanimous in financial terms. Three countries officially refused to participate in financing this loan. These are Hungary, Slovakia, and the Czech Republic. These states had previously stated that they would not support the use of EU taxpayers' money for Ukraine. Although they did not block the decision politically (avoiding a veto), the financial burden will fall on the rest of the bloc's members.

President Volodymyr Zelensky thanked European leaders for their decision to provide Ukraine with €90 billion in financial support in 2026-2027.

“This is significant support that truly strengthens our resilience. It is important that Russian assets remain frozen and that Ukraine has received a financial security guarantee for the coming years. Thank you for the result and unity,” he said.