Tsahkna: Agreement reached on allocating €90 billion to Ukraine

TALLINN - According to Foreign Minister Margus Tsahkna, the agreement reached in the European Union on Thursday to allocate a €90 billion loan to Ukraine, along with the political approval of the 20th sanctions package, is a long-awaited breakthrough, proving that despite obstacles, the bloc remains firmly on the path of supporting Ukraine.

The decision to grant the €90 billion loan to Ukraine was made in the EU at the end of last year, but its implementation was stalled for several months by Hungary's blockade.

"We have now finally overcome this obstacle, and the EU can disburse the first tranche of the long-awaited loan to Ukraine. With this, we prove that the EU remains on course to support Ukraine, enabling it to fight for its freedom and for a just and lasting peace in Europe," said the foreign minister. "The loan will help cover Ukraine's urgent financial needs and thereby strengthen its position on the battlefield and in negotiations."

At the end of last year, EU member states agreed to provide Ukraine with a €90 billion loan for the years 2026-2027. Of this amount, €30 billion will be allocated to ensure the functioning of the Ukrainian state and its budgetary stability, and €60 billion will be invested in Ukraine's defense industry and the procurement of military equipment from European and Ukrainian companies.

The loan will be financed from EU capital markets and guaranteed by the European Union's budget. Ukraine will only begin repaying the loan after Russia has paid reparations for war damages. Until then, Russian state assets will remain frozen, and the EU reserves the right to use these assets for the loan's repayment.