EU Affairs Committee supports urgent EU loan to Ukraine

TALLINN – At its meeting on Friday, the European Union Affairs Committee of the Estonian Parliament decided to urgently support the government's position on granting a loan to Ukraine for 2026 and 2027.

Peeter Tali, chairman of the European Union Affairs Committee, explained that a European Union regulation provides for a support loan of 90 billion euros to Ukraine for 2026 and 2027. Of this amount, 60 billion euros is designated for defense aid and 30 billion as general budgetary support. Consequently, Estonia is joining 23 other member states in an enhanced cooperation to secure the joint loan needed to finance this support for Ukraine, which will be guaranteed by the European Union's budgetary buffer.

"The EU loan is a matter of life and death for Ukraine, as Kyiv might otherwise run out of money by spring. We must help Ukraine to endure as a state. Supporting Ukraine is crucial for the free world and is tied to the broader, complex geopolitical situation," Tali stressed. "Russia's war in Ukraine continues at full force, with Ukrainian cities and people under daily terrorist attacks from Putin's regime. Peace is nowhere in sight. The Kremlin must pay for the damages of war."

Therefore, the EU Affairs Committee also supported the principle of the regulation, which reserves the right for the European Union to use Russia's frozen assets for loan repayment.

The EU Affairs Committee also agreed with the government's position on the EU proposal that the costs associated with the loan will be covered by the member states participating in the enhanced cooperation. In 2027, if unallocated budgetary funds are unavailable, the preference is to cover these costs through the Ukraine loan facility, as proposed by the European Commission. From 2028 onwards, the aim is to find a solution for covering loan costs that does not reduce the volume of loans and grants to Ukraine.

Andres Kuningas, head of the finance department at Estonia's Permanent Representation to the EU, explained at the meeting that Estonia as a state is not taking on a separate obligation at this time, as the loan is guaranteed by the EU's budgetary buffer. He added that in a very long-term scenario—if reparations are not paid and the EU has to cover the loan—Estonia's so-called 'fair share' of the 90 billion euros would be approximately 209 million euros, but this would only become a reality if the EU were to make such a decision.

Kuningas noted that Hungary, the Czech Republic, and Slovakia are not participating in the scheme, and that the Commission has made proposals to implement the European Council's decisions through enhanced cooperation.

Marten Ross, an adviser from the Ministry of Finance, also participated in the committee meeting.