14. January 2026
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EU Leaders Approve €90 Billion Support Package for Ukraine to Strengthen Economy and Defence
European Union leaders have reached a major agreement to provide **€90 billion in financial support** to Ukraine over the next two years. The deal was struck after marathon talks at a summit in Brussels as Kyiv faces severe budget shortfalls and mounting defence needs amid its ongoing conflict with Russia.
Quick Insight:
This €90 billion package — equivalent to roughly **$105 billion** — comes in the form of an **interest-free loan backed by EU borrowing**. It is designed to sustain Ukraine’s government functions and defence capabilities throughout 2026 and 2027.
Key Elements of the Support Package
• The €90 billion funding will be raised through joint EU borrowing on capital markets rather than relying on frozen Russian assets.
• The loan aims to cover Ukraine’s **urgent budgetary needs** and bolster its ability to procure military equipment.
• Financial support is intended to keep Ukraine stable and resilient as the war continues, preventing a financial collapse that could weaken its defence position.
Why the Deal Matters
• Ukraine has been running low on funds needed to pay salaries, maintain services, and purchase critical defence supplies.
• The European Union’s support is viewed as a lifeline that helps Kyiv maintain operations and resist pressures stemming from the prolonged conflict.
• Securing multinational backing reinforces the international commitment to Ukraine’s sovereignty and security.
Political Dynamics and Funding Challenges
• EU leaders had also discussed more controversial plans to use frozen Russian central bank assets to fund Ukraine but were unable to reach a consensus on that approach.
• As a result, the decision to raise the loan through EU budget-backed borrowing reflects a compromise that allowed the deal to move forward.
• Some EU member states, including Hungary, Slovakia, and the Czech Republic, opted not to participate in the financing mechanism.
Final Thoughts
The €90 billion support package marks one of the most significant financial commitments by the European Union in recent years. It underscores the bloc’s strategic aim to ensure that Ukraine remains financially stable and capable of defending itself amid ongoing tensions. While the funding mechanism drew debate, the agreement ultimately highlights the EU’s resolve to back Ukraine as a key partner in European security.
