Ukraine received a loan of 90 billion euros from the EU to finance the budget and defense. Zelenskyy described this step as crucial for strengthening the resilience of his country.
- Ukraine will receive a loan of 90 billion euros from the European Union.
- The loan will support Kyiv in the war against Russia.
- The finances will be covered by the EU budget and common debt.
Ukrainian President Volodymyr Zelenskyi thanked the European Union on Friday for a loan of 90 billion euros to cover his country’s impending budget deficit. According to Zelensky, the loan “really strengthens” Kyiv’s defense in the war with Russia, TASR reports, according to an AFP report.
“This is a significant support that really strengthens our resilience,” the Ukrainian president said on the X platform.
Decision of EU leaders
“It is important that Russian assets remain immobilized and that Ukraine receives a guarantee of financial security for the coming years,” Zelenskyy added.
EU leaders agreed at the European Council meeting on Friday night that the Union will provide Ukraine with an interest-free loan of 90 billion euros. President of the European Council António Costa and German Chancellor Friedrich Merz informed about it on the X platform.
Financing and loan conditions
The loan for Ukraine will be financed from the common debt, which will be covered by the EU budget. This money will be loaned to Ukraine over the next two years, Politico explains. However, Slovakia, the Czech Republic and Hungary will be exempted from the joint debt program, which have negotiated an exemption.
To repay the debt, Kiev will use war reparations in the future, which should be paid by Russia after the end of the conflict. If Moscow refuses to do so, “the Union reserves the right to use” its frozen state assets “to repay the loan,” EU leaders wrote in a joint statement, according to Politico.
Budget deficit of Ukraine
The deal ensures that Ukraine will be able to cover its 71.7 billion euro budget deficit next year and continue to fund its defense against Russian forces. According to the statement, the loan is also intended for “strengthening the European and Ukrainian defense industry”. The text also calls on Kyiv to continue the fight against corruption and uphold the rule of law.
