KYIV: The European Union has approved a €90 billion loan to meet Ukraine’s budgetary and military needs. The European Commission announced that this loan will be provided over the next two years to cover a significant portion of Ukraine’s financial requirements. The decision comes in January after EU leaders opted in December to provide loans from the EU budget as “compensatory loans” guaranteed by Russia’s frozen assets in member countries. Last year, the International Monetary Fund (IMF) estimated that Ukraine would require approximately €135 billion for the years 2026 and 2027. Meanwhile, Kyiv is facing a budget deficit of €71.7 billion as early as the start of the coming spring. While Washington has indicated a reduction in its financial assistance to Ukraine, the EU has committed to covering a large portion of this deficit.
