Ukraine is entering the fifth year of its war with Russia, and financial support for Kyiv remains one of the European Union’s key instruments of assistance. So far, the EU and its member states have provided Ukraine with nearly €195 billion in aid. Work is now under way to make a €90 billion loan available to Ukraine. In February, the European Parliament adopted a package of three legal acts that would enable this step, but formal approval from all member states is still required. That approval, however, has been thrown into doubt following statements from Hungary.
“The European Parliament voted for a special €90 billion loan for Ukraine for 2026–2027. Thanks to it, Ukraine will be able, among other things, to produce and purchase weapons to defend itself, but it will also allow the state to function, because part of the loan also concerns the Ukrainian government’s day-to-day spending. It’s a good move,” Robert Biedroń, a Member of the European Parliament from Poland’s New Left, told the Newseria agency.
The regulations adopted by the European Parliament in February create the legal framework for a new financial instrument intended to provide Ukraine with stable funding over the next two years. The package includes three proposals: the loan itself, an amendment to the Ukraine Facility, and an amendment to the EU’s multiannual budget for 2021–2027. Of the total loan amount, €30 billion will be allocated to budget support delivered through the Ukraine Facility. The remaining €60 billion will be directed to strengthening Ukraine’s defence capabilities and supporting the purchase of military equipment.
The loan is to be financed through joint EU borrowing, and Ukraine would be obliged to repay it after receiving war reparations from Russia. However, disbursing the loan requires unanimous consent from the member states. In recent days, both Hungarian Prime Minister Viktor Orbán and Hungary’s foreign minister Péter Szijjártó have announced Budapest’s opposition, making their position conditional on restoring oil transit to Hungary through the Druzhba pipeline.
“It’s better to lend this money to Ukraine today than to rebuild Poland from destruction one day, if Putin were to attack it after taking Ukraine,” says Robert Biedroń.
Since the start of Russia’s full-scale invasion, the European Union together with its 27 member states has provided Ukraine with support worth a total of €194.9 billion, including €104.5 billion in financial, economic and humanitarian assistance and €69.7 billion for military purposes, as well as €17 billion to support refugees in the EU and €3.7 billion in proceeds from frozen Russian assets.
“The problem is, of course, fatigue. The further west you go from Kyiv, the smaller the awareness of what is happening there, and the less ‘tangible’ this war feels. And it’s understandable that after four years of war some parliamentarians will be tired of the topic. The media is no longer as interested in the war in Ukraine as it used to be, but we, as Poles, must do everything to keep talking about Ukraine and supporting it—because today it’s Ukraine, tomorrow it could be Poland,” the New Left MEP stresses.
In the draft for the new multiannual financial framework for 2028–2034, the European Commission has also provided for the possibility of supporting Ukraine. This would be done through a proposed flexible financial instrument worth up to €100 billion. Support for operations of a military nature is to remain financed outside the EU budget, under the European Peace Facility.
The Commission has also presented a proposal for a “Global Europe” instrument aimed at funding the EU’s external actions. The mechanism would consolidate financing for the Union’s external policy, increase support for candidate countries, and improve flexibility in responding to crisis situations. The proposed budget for this mechanism is €200 billion. The programme would also include a dedicated reserve of €15 billion intended to respond to unforeseen crises and extraordinary needs.
“All external actions of the European Union under one ‘Global Europe’ umbrella include, among other things, support for Ukraine, the enlargement of the EU, and our policies in different parts of the world—so that the EU can respond even more firmly and appropriately to today’s challenges linked to global crises. It is also about the European Union strengthening its economic potential in competition with powers such as China or the United States. This €200 billion is meant to strengthen the EU in trade and politics, but also to strengthen support for Ukraine,” Robert Biedroń says.
