EU envoys agree details of 90bn euro loan for Ukraine

European Union ambassadors on Wednesday (4 February) approved details of a 90 billion euro loan for Ukraine, an initiative agreed by EU leaders in December to meet most of Kyiv's financial needs in 2026-2027 and keep up its fight against Russia's invasion.

The ambassadors reached the agreement at a closed-door meeting in Brussels, diplomats said.

The text of the agreement was not immediately available but the Council of the EU said in a statement that two thirds of the funds would be spent on military aid and one third on general budget support.

On military aid, the deal stipulates that Kyiv should use the loan primarily to buy weapons from Ukraine or the EU but could buy from other countries if certain conditions are met.

"Defence products should in principle only be procured from companies in the EU, Ukraine, or EEA-EFTA countries. Should Ukraine's military needs require the urgent delivery of a defence product which happens not to be available in the EU, Ukraine or an EEA-EFTA country, a set of targeted derogations would apply," the Council said.

The agreement also requires approval by the European Parliament, which diplomats said they hoped would come soon to allow the Commission to start borrowing on the markets and make a first payment to Ukraine in early April.

EU leaders agreed in December to fund the loan through EU borrowing rather than back a plan to use Russian assets frozen in the bloc.