Ukrainian parliament ratifies €90 bln EU loan

According to Ukrinform, legislative initiative No. 0376 was supported by 298 MPs.

“The agreement provides a legal framework for receiving €90 billion. The allocation of funds will include €60 billion to strengthen Ukraine’s defense‑industrial capacity and €30 billion for budgetary support,” explained Finance Minister Sergii Marchenko.

He emphasized that this year the state will receive €28.3 billion for arms procurement and €16.7 billion for macro‑financial support.

“Ukraine will repay this loan only if Russia pays reparations. Repayment will be made from those reparations,” the minister stressed.

As reported, President Volodymyr Zelensky submitted to parliament a draft law on ratifying the agreement for €90 billion in macro‑financial assistance under the Ukraine support loan.

The purpose of the document is to ratify Ukraine’s international treaties establishing the legal framework for attracting funds up to €90 billion, including macro‑financial assistance under the support loan.

The Loan Agreement sets out detailed technical, financial, and procedural aspects of raising funds within the €90 billion framework, their distribution between budgetary and defense components, and the repayment mechanism (exclusively from reparations paid by the Russian Federation).

Meanwhile, the Memorandum of Understanding defines general aspects of receiving part of the budgetary support — up to €8.35 billion in 2026.

It specifies the timing, amount, purpose of assistance, and policy measures across three components: mobilization of domestic revenues, sustainability and efficiency of public spending, and improvements in public financial management systems.

Entry into force of the Loan Agreement and Memorandum after ratification will allow Ukraine to attract an unprecedented volume of EU financial resources — up to €90 billion in 2026–2027. This will have a significant positive impact in several areas:

• Defense and security: direct allocation of resources to strengthen Ukraine’s defense‑industrial capacity, procure weapons, develop domestic defense production, and meet urgent defense needs.
• Public financial management: implementation of the Memorandum’s measures will transform the system through mobilization of domestic revenues, improved sustainability and efficiency of public spending, and enhanced financial management systems.

In addition, receiving the remaining portion of budgetary support under Ukraine’s Plan within the Ukraine Facility instrument, approved by the Cabinet of Ministers, will contribute to reforming priority sectors of the economy and the public sector.