EU with massive new loan program plus billions in budget support

The European Union will dedicate most of a massive new loan program to Ukraine’s military needs over the next two years while also injecting billions into its war-ravaged economy, European Commission President Ursula von der Leyen said Wednesday.

EU leaders agreed last month to loan Ukraine 90 billion euros ($105 billion) to help cover its needs in 2026 and 2027. Kyiv would only have to pay the money back once Russia ends its war and pays reparations for the damage it has inflicted over almost four years.

The International Monetary Fund estimates that Ukraine will need 137 billion euros ($160 billion) over the two years. The government in Kyiv is on the verge of bankruptcy and desperately needs the money by spring.

EU targets Ukraine's military needs with massive new loan program plus billions in budget support

The bloc hopes that other countries like Britain, Canada, Japan and Norway will help make up the difference. The IMF is preparing a new multi-billion dollar Ukraine loan and is expected to endorse it next month.