Two-thirds of a vital $105 billion (90 billion euros) EU loan for Ukraine will go to cover Kiev's military apparatus, with the rest earmarked for general budget support, Brussels said on Wednesday.
Agreed by EU member states in December after months of diplomatic wrangling, the loan offers cash-strapped Ukraine a desperately needed lifeline as Russia's war on its neighbour grinds towards its fifth year.
"With this support, we make sure that Ukraine can, on one hand, bolster its defence on the battlefield and strengthen its defence capabilities, so its military needs, and on the other hand, keep the state and basic services running," EU chief Ursula von der Leyen told reporters.
Von der Leyen said the funds will be used to buy weapons mainly from Ukraine and European nations, something France and others have long said is key to bolstering the EU's defence industry and easing dependence on the United States.
But if the necessary equipment were not to be readily available in Europe, it would be occasionally possible for Kiev to shop outside the continent, the commission president added.
"For us, it is a lot of money. These are billions and billions that are being invested. And these investments should have a return on investment in creating jobs, in creating research and development," said von der Leyen.
The loan, which is to cover two-thirds of Ukraine's financial needs for the next two years, has to be approved by the European Parliament and member states before the money can start to be paid out.
It was agreed last month by European Union leaders who settled on a loan backed by the bloc's common budget, after plans to tap frozen Russian central bank assets fell by the wayside.
The EU has said Ukraine would only need to pay back the money once Moscow coughs up for the damages it has wrought.
Brussels will cover interest costs, expected to hover around three billion euros per year, through the EU budget.
