EU Council Approves €90 Billion Loan to Ukraine for 2026-2027: Conditions and Details

On April 23, the EU Council adopted changes to the long-term budget, finalizing the provision of a €90 billion EU loan to Ukraine for 2026-2027. The loan's unblocking was made possible after the resumption of Russian oil transit via the «Druzhba» pipeline to Hungary, which prompted Prime Minister Viktor Orbán to lift his veto.

Although the loan approval procedure is complete, a series of agreements lie ahead. Brussels is not yet ready to provide funds technically or legally. Three important documents detailing the loan are under development. The conditions for receiving funds are not yet finalized or agreed upon by Ukraine. Budgetary support will be provided in exchange for reforms, while funds for armaments have been excluded from this conditionality.

The conditions will concern the rule of law and the fight against corruption, encouraging Ukraine to implement reforms already promised to the EU. This includes elements of the plan known as the «10 points of Kachka-Kos». The EU and Ukraine must adopt a Loan Agreement for €90 billion, a Memorandum of Understanding on macro-financial assistance, and amendments to the agreement within the Ukraine Facility instrument. These €90 billion will be divided into parts with different rules and conditions. Military funds will be unconditional, while budgetary assistance will be contingent on reforms.