EU reminds that €90bn loan will cover only two-thirds of Ukraine's needs
The European Commission has reiterated that the EU's two-year €90 billion loan to Ukraine was designed to cover only two-thirds of the country's budget and defense needs, with partners urged to fill the remaining gap.
European Commission chief spokesperson Paula Pinho has reminded that the EU's €90 billion loan to Ukraine, planned for 2026-2027, was designed from the outset to cover roughly two-thirds of Ukraine's budgetary and military needs over that period, not the full shortfall.
Responding to a question about prospects for closing Ukraine's defense budget deficit, Pinho said this was the original calculation behind the loan program. She acknowledged that one-third of the needs remains uncovered by the EU, and that partners have been called on to step in and contribute to closing that gap.
Payments tied to reforms
The spokesperson stressed that disbursements under the loan are closely linked to reforms being implemented in Ukraine, describing this connection as a critically important part of the program. She said the process of disbursing funds based on Ukraine's requests is progressing well, though the payment plan itself is highly ambitious, as each step is tied to the gradual implementation of reforms. Pinho acknowledged that Ukraine has very significant needs to be able to deter further aggression, but said the EU's current focus remains on delivering the already ambitious disbursement plan.
Background
It was previously reported that Ukraine has not submitted a formal request to the European Commission for early disbursement in 2026 of the portion of the €90 billion loan earmarked for 2027, which would help cover a €27 billion defense budget deficit this year. On August 24, the European Commission approved €6.1 billion in defense procurement for Ukraine under the €90 billion EU loan. By the end of 2026, the EU is expected to pay out around €20 billion to Ukraine, with new tranches potentially arriving in the coming weeks. Separately, on July 30 the Council of the EU approved an updated reform plan under the Ukraine Facility mechanism, allowing Ukraine to receive €8.3 billion in 2026 to help cover budget needs.
