The European Union has unveiled the details of a 90 billion euro financial package to support Ukraine, with the bulk of the funds earmarked for defense as the conflict with Russia nears its fifth year. European Commission President Ursula von der Leyen presented the breakdown during a press conference in Brussels on January 14, revealing that 60 billion euros will be allocated for military purposes, while the remaining 30 billion euros is intended to support Ukraine’s state budget.

The funds stem from a decision made at a December summit in Brussels, where EU countries agreed to jointly raise 90 billion euros in debt to lend to Kyiv. An earlier plan to fund Ukraine using frozen Russian assets, dubbed the “reparations loan,” collapsed at the last minute. Without additional assistance, Ukraine was projected to run out of cash by mid-2026.

“We all want peace for Ukraine, and for that, Ukraine must be in a position of strength,” von der Leyen said. The proposed “Ukraine Support Loan” must now be approved by the European Parliament and the Council before implementation. According to EU calculations, the package will cover roughly two-thirds of Ukraine’s financial needs for 2026–2027, with Kyiv requiring 52 billion euros for budgetary support and 83 billion euros for defense in that period.

The loan is structured so that Ukraine will not have to repay the EU, except in the unlikely event that Russia provides reparations following the war. Von der Leyen stressed that military procurement would prioritize European-made equipment, though funds could be redirected if the required gear is unavailable. The move is also intended to strengthen Europe’s defense industrial base and foster closer integration across member states’ military production capabilities.

However, Ukraine has emphasized that certain American-made systems, such as the Patriot air defense batteries and PAC-3 interceptors, are irreplaceable for defending against Russian ballistic missiles, which have caused significant damage to the country’s energy infrastructure in recent weeks.

On the budgetary side, the EU has tied support to Ukraine’s commitment to democratic governance, the rule of law, and anti-corruption measures. Von der Leyen said, “The budget support is designed to help Ukraine advance its reforms and modernize the country.”

While the reparations loan plan failed in December, von der Leyen confirmed it remains under consideration and that frozen Russian assets, totaling around 300 billion US dollars globally, most of which are held in Belgium, could potentially be used to repay the EU support loan in the future. The package represents the EU’s largest coordinated financial assistance effort to Ukraine since the start of the war.