Ukraine’s parliament has approved a loan agreement with the European Union, EU, paving the way for €90 billion in financing and allowing the government to channel record funds to defence and the war with Russia now in its fifth year.
Parliament approved the loan agreement with the EU with 298 votes, well ahead of the 226 votes required for a majority.
Immediately after the vote, President Volodymyr Zelenskiy thanked the lawmakers and European partners, saying the funds from the EU would strengthen Ukraine’s resilience.
“This was one of the most important votes, one that demonstrates the constructive nature of our joint work and our readiness to hear one another, Unity in Ukraine is what always works for Ukraine,” Zelenskiy said.
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The EU gave its final approval to the €90 billion loan for Ukraine last month after Hungary lifted its veto, ending months of delays and easing pressures on the Ukrainian state budget.
European Commission President, Ursula von der Leyen said the vote paved the way for the first disbursements in June.
The government expects to receive €3.2 billion next month and a total of €45 billion this year. The remaining €45 billion would be kept for 2027.
“The funds will be allocated to national defence and security, strengthening energy resilience and covering the budget deficit.
“Support from the EU enables Ukraine to maintain macro-financial stability and fulfil its social obligations to its people,” Ukrainian Prime Minister Yulia Svyrydenko said.
Parliament also gave its preliminary backing to amending the 2026 state budget to reflect a higher level of international financial aid planned for this year.
Under the bill approved in the first reading, the government would spend €31.8 billion from the EU loan for defence efforts and €13.2 billion to cover the budget gap.
That will allow Ukraine’s overall defence spending to rise to a record of about $100 billion this year, up from a previously forecast $64 billion. Defence spending last year was about $61.4 billion.
The EU funding would help reduce the 2026 budget deficit to 12.1% of gross domestic product from 18.5% planned initially.
Reuters
