EU Commission Sets Out €45 Billion Mechanism for Ukraine's 2027 Loan Funds

In brief

• The European Commission has proposed how the final €45 billion of the €90 billion EU loan to Ukraine will be spent.
• Under the proposal, €13.3 billion would support the state budget and €31.7 billion would fund the defence industry in 2027.
• Canada plans to join the initiative and let Ukraine buy its military equipment with the loan money.

Brussels proposes the 2027 split

The European Commission has proposed how the remaining €45 billion will be allocated, and EU member states must still approve it (Єврокомісія запустила погодження €45 млрд кредиту для України: куди спрямують кошти – UNIAN) (Reuters: Єврокомісія підготувала механізм виділення Україні ще 45 млрд євро кредиту на 2027 рік – Українська правда). The money is due to reach Kyiv by the end of 2027 (Еврокомиссия планирует выплатить Украине еще 45 млрд евро до конца 2027 года — Reuters – NV).

Where the money would go

According to the proposal, the funds would be divided as follows (Ще €45 млрд для України: Єврокомісія підготувала механізм виділення кредиту на 2027 рік – TSN):

• State budget support: €13.3 billion
• Ukraine's defence-industrial complex: €31.7 billion
• Total remaining tranche: €45 billion

Part of a €90 billion programme

The Ukraine Support Loan totals €90 billion for 2026 and 2027. EU countries agreed to it in April 2026. Half of the total was planned for disbursement in 2026.

Von der Leyen on predictability

Commission President Ursula von der Leyen said the proposal gives Ukraine the financial predictability it needs and helps keep essential state services running.

Canada and the ninth tranche

Canada plans to join the loan initiative. Ottawa intends to let Ukraine buy military equipment from Canadian defence manufacturers using funds from the European programme.

The Commission assessed Ukraine's progress on the conditions for the ninth tranche. It found 16 of 18 required steps satisfactory. Completed steps include modernising the IT system for enforcing court rulings and adopting a human rights protection strategy.