EU, Ukraine agree to accelerate €45B loan payout in 2027

The European Commission and Ukraine have agreed to accelerate the disbursement of €45 billion intended for Kyiv in 2027, according to a joint statement released Thursday. This comes as Russia has intensified its drone and missile attacks against Ukraine, leaving the nation struggling to fund its defense efforts. Prime Minister Sergii Koretskyi has stated that Ukraine faces a $27 billion (€23 billion) defense funding deficit this year, with the government hoping to cover approximately $7 billion domestically and relying on international partners for the remaining balance.

President Volodymyr Zelenskyy has warned that if the funding gap is not addressed within the next two months, Ukraine may struggle to purchase weapons at the beginning of the following year. At an EU defense ministers meeting, many called for the early distribution of funds from the €90 billion loan allocated for 2027, meaning the release of part of the 2027 loan this year rather than waiting until next year, as reported by the EU's top diplomat Kaja Kallas.

However, the Commission opted to speed up the disbursement of the 2027 loan in the current year, allowing Ukraine to receive the funds more quickly. "Our dialogue with the European Commission has yielded positive outcomes in addressing Ukraine's financial and defense requirements for 2026 and 2027," Zelenskyy affirmed. "We have reached an agreement on the structure, schedule, and actions required to ensure the full coverage of funds," he added.

The two parties have outlined the steps and conditions necessary for Ukraine to receive the €45 billion, with disbursement commencing immediately upon meeting these conditions. Additionally, the EU and Ukraine have committed to ongoing monthly discussions to coordinate their efforts and identify any further financial and defense needs.