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Ukraine will only repay the €90 billion EU loan once Russia has paid reparations

Katerina Melnychenko
Katerina Melnychenko Deputy Editor-in-Chief
Ukraine will only repay the €90 billion EU loan once Russia has paid reparations
Statement from the Ministry of Finance regarding Ukraine’s repayment of the €90 billion EU loan
Ukraine should only begin repaying the €90 billion loan from the European Union once Russia has paid reparations for the damage caused by the war. If Moscow fails to compensate for the damage, the EU will be able to use frozen Russian assets to settle the debt.

This was reported by the Ministry of Finance of Ukraine in response to an enquiry from Interfax-Ukraine.

The Ministry of Finance explained how Ukraine is to repay the €90 billion loan from the European Union under the Ukraine Support Loan.

Under the terms of the loan, Ukraine will only begin repaying the debt once Russia has paid reparations for the damage caused by the war.

If Russia does not compensate for the damage, the European Union reserves the right to use frozen Russian assets to repay this debt.

The Ministry of Finance also noted that the European Commission’s documents do not specify a specific repayment deadline.

In other words, there are currently no exact dates for when Ukraine is due to start repaying these funds.

The ministry emphasised that Ukraine will have no obligation to repay the loan if Russia does not compensate for the war-related damages.

“The parties are currently continuing technical consultations regarding the number and size of the tranches. The allocation of the budgetary portion of the funds will be linked to Ukraine’s fulfilment of certain conditions, which may affect the size of individual payments,” the Ministry of Finance reported.

The total amount of aid from the European Union is €90 billion.

These funds are divided into two categories.

€60 billion is earmarked for military support.

A further €30 billion is to be directed towards budgetary stability.

In 2026, Ukraine expects to receive €45 billion.

Of this amount, €28.3 billion is to be spent on defence needs.

A further €16.7 billion is earmarked for social and macro-financial support.

The first tranche of funds, which the EU is raising on capital markets against the guarantee of its own budget, is expected as early as May–June.

The budgetary portion of the funding is planned to be provided in two equal instalments.

Ukraine is set to receive €8.35 billion in the form of macro-financial assistance.

A further €8.35 billion is earmarked through the Ukraine Facility.

Ukraine and the EU are currently continuing technical consultations regarding the number and size of the tranches.

As reported by ThePublic, Hungary blocked a €90 billion EU loan for Ukraine on the eve of the anniversary of the invasion

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