Last month, EU leaders reached an agreement to provide Ukraine with 90 billion euros ($105 billion) to assist in meeting its needs for 2026 and 2027. Ukraine will only be required to reimburse this amount once Russia concludes its war and compensates for the damage caused over nearly four years.
The International Monetary Fund estimates that Ukraine will require 137 billion euros ($160 billion) within the next two years. The Ukrainian government is facing imminent bankruptcy and urgently needs funds by spring.
The EU hopes that nations such as Britain, Canada, Japan, and Norway will help fill the funding gaps. The IMF is also preparing a new multi-billion dollar
loan for Ukraine, which is anticipated to be approved next month.
“We all seek peace for Ukraine, and for that, Ukraine needs to be in a position of strength,” von der Leyen stated while outlining the commission’s expenditure plans. She noted that 60 billion euros ($70 billion) would be allocated for military assistance, and 30 billion euros ($35 billion) would be designated for budgetary support.
“With this military aid, Ukraine can robustly defend itself against Russia, while also integrating more closely into Europe’s defense industrial framework,” von der Leyen told the press.
The commission aims for the loan funds to commence distribution by April, but EU member states and the European Parliament must approve the spending plan before it can take effect.
The military portion of the funds will be utilized to procure equipment from Ukraine, other EU nations, and additional countries within Europe’s economic zone, including Norway. “It may also be feasible to source equipment from outside if it’s deemed more effective,” von der Leyen added.
Under certain conditions, part of the funding could be utilized through a NATO scheme which allows European allies and Canada to purchase arms and equipment from the United States to donate to Ukraine, officials have indicated.
Von der Leyen emphasized that Ukraine must embark on pro-democracy reforms to qualify for the loans, particularly in areas such as the rule of law and anti-corruption efforts. “These conditions are non-negotiable for any financial support,” she asserted.
Ukraine has struggled with corruption for decades, and pressure increased on President Volodymyr Zelenskyy last year following the resignation of his influential chief of staff, Andrii Yermak, after anti-corruption investigators searched his residence.
Yermak also served as Ukraine’s chief negotiator in discussions with the United States aimed at ending the war.
