European Parliament approves $107B aid deal for Ukraine in war against Russia

The European Parliament on Wednesday approved a €90 billion ($107 billion) loan for Ukraine, swiftly greenlighting a major financial support package aimed at sustaining Kiev's public services and defence capabilities.

European Commission President Ursula von der Leyen welcomed the parliament's rapid adoption of the proposal, underlining the EU's continued commitment to Ukraine.

"Ukraine's courage is unshakable. And so is Europe's resolve to stand by its side. Today and tomorrow! Because a strong Ukraine makes all of Europe safer," she wrote on the US social media platform X.

Under the proposed framework, the EU funding will be made available to Ukraine through two main channels.

Financial and defence support

Of the total amount, €30 billion ($35.8 billion) will be provided as macroeconomic support, either via macro-financial assistance or through the Ukraine Facility, the EU's dedicated instrument designed to deliver stable and predictable financial support to Kiev.

The remaining €60 billion ($71.5 billion) will be used to bolster Ukraine's defence industrial capacity and support the procurement of military equipment, providing Ukraine with timely access to defence products from both Ukrainian and EU defence industries.

European Parliament President Roberta Metsola said the vote delivered "a vital lifeline" for Ukraine, stressing that the funding would ensure the continuity of essential public services while reinforcing the country’s defence.

The package must still be formally approved by the EU Council before the commission can disburse the first tranche of funds, expected in the early second quarter of 2026.

In December, EU leaders agreed after weeks of negotiations to finance Ukraine for 2026 and 2027 through borrowing on capital markets.

The decision followed a failure among member states to reach consensus on using frozen Russian assets directly to support Ukraine.