The EU Council has agreed the terms for a €90bn loan to Ukraine. The bulk of the funding—€60bn—is earmarked for military assistance, while a further €30bn will go towards broader support for the state budget. Interest payments on the loan will be covered from the EU budget.
Arms purchases under this mechanism are to be made primarily from manufacturers in Ukraine and EU member states. Buying weapons from other countries would be allowed only in cases of urgent necessity. A separate provision stipulates that Britain and a number of other countries will be able to take part in supplying arms to Ukraine using the EU loan, provided they make a financial contribution—an element pushed by France.
Twenty-four of the EU’s 27 member states are taking part in the scheme. Slovakia, Hungary and the Czech Republic have declined to join the loan. Those countries have confirmed they will not contribute to the €90bn mechanism for financing Ukraine, the EU Council said.
The agreement requires the European Parliament’s approval to enter into force.