EU Commission Advances USD104B Loan Plan for Ukraine

(MENAFN) The European Commission has pushed forward with preparations for a €90 billion ($104 billion) loan to support Ukraine, despite an ongoing political deadlock among member states that has stalled full implementation, according to reports.

The Commission has taken steps to mobilize part of the funding for 2026 and accelerate defense procurement, with a strong emphasis on drone production, even though the overall loan package has not yet been fully approved.

European Commission President Ursula von der Leyen stated, “We will deliver on the €90 billion ($104 billion) loan to Ukraine. Today, we are taking the necessary preparatory steps to mobilize this year's budget and procure defense equipment, with a focus on Ukraine's cutting-edge drone industry. With this we send a clear message: the Commission stands ready to move forward.”

After a positive review of Ukraine’s financing strategy, the Commission proposed allocating €45 billion ($52 billion) by the end of 2026 as part of the larger loan initiative. This funding includes up to €16.7 billion ($19 billion) in budget support through EU financial instruments and €28.3 billion ($33 billion) aimed at enhancing Ukraine’s defense industrial capacity.

Additionally, the Commission approved procurement derogations to speed up drone acquisitions, citing urgent wartime needs in Ukraine. Further defense procurement plans, including missiles and ammunition, are expected in the near future.

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