The European Union unveiled a 90 billion euro loan package for Ukraine to span 2026 and 2027, with 60 billion euros earmarked for military aid and 30 billion euros for budget support.

Ukraine would buy military equipment from domestic suppliers, EU/EEA, or EFTA countries first, with a provision to source from non-EU suppliers only if suitable European-aligned options are unavailable under a Buy European, but not if unavailable rule.

The package is designed around Ukraine needing roughly 137 billion euros over the two-year period, with repayment contingent on Russia paying reparations after the war ends.

There was discussion of a potential future visit to Moscow by Steve Witkoff and Jared Kushner to discuss peace, though the White House denied any scheduled meeting.

The plan comes amid concerns about Ukraine’s corruption issues, including the resignation of President Zelenskyy’s top aide Andrii Yermak amid anti-corruption investigations.

Kyiv’s political context includes ongoing corruption scrutiny and the resignation of Zelenskyy’s top aide, Andriy Yermak, adding pressure on the loan terms.

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There are tensions over using seized Russian assets for repayment, with debates about debt-like mechanisms and Eurobond alternatives among EU members.

The plan was announced in Brussels ahead of the fourth anniversary of Russia’s full-scale invasion of Ukraine.

The package emphasizes adherence to EU and international law in the use of frozen assets and in the financing structure.

Russia continues attacks on Ukraine’s energy infrastructure, causing power outages during severe winter conditions.

Twenty-four EU member states back the loan, while Hungary, the Czech Republic, and Slovakia opted out.