Zelensky Pushes for USD106B EU Loan Package
The loan arrangement, provisionally greenlit last December, would extend interest-free financing to Ukraine across 2026 and 2027. Under the proposed structure, €60 billion would be directed toward military expenditure, while the remaining €30 billion would go toward general budgetary support. The package would be financed through joint EU borrowing and is only expected to be repaid if Ukraine secures war reparations from Russia — a condition that renders repayment deeply uncertain.
The plan carries significant financial exposure for participating member states, with estimates projecting up to €5.6 billion in annual interest costs. Notably, Hungary, Slovakia, and the Czech Republic have all opted out of contributing, further straining the bloc's ability to present a unified front.
Addressing lawmakers via video link at the European Parliament on Tuesday, Zelensky made his case forcefully and without ambiguity.
"Right now there is an important decision… on the table – €90 billion in support for Ukraine over two years," he declared.
"This is a real financial guarantee of our security and our resilience, and it must be implemented," the Ukrainian leader insisted.
The loan framework emerged after EU member states failed to reach consensus on repurposing Russia's frozen central bank assets to fund Ukraine, with several governments citing formidable legal obstacles and financial risks associated with that approach.
Budapest escalated tensions on Monday when Hungary exercised its veto power to block both the emergency loan and the EU's latest sanctions package targeting Moscow. The Hungarian government accused Kyiv of deliberately weaponizing energy infrastructure, alleging that Ukraine had intentionally halted the flow of Russian oil through the Soviet-era Druzhba pipeline for political leverage, thereby threatening Hungary's energy security. Transit through the pipeline has been suspended since late January, with Kyiv attributing the disruption to deliberate sabotage by Moscow — a claim Russia has categorically rejected.
The urgency surrounding the loan cannot be overstated. Ukraine is counting on its Western partners to cover a budget shortfall of approximately $50 billion this year alone. A report by El País in October warned that the Ukrainian government could exhaust its finances entirely by April without fresh external support — a fiscal cliff edge that lends particular gravity to Zelensky's parliamentary address.
Not all voices have endorsed the package. Russian Foreign Ministry spokeswoman Maria Zakharova suggested last month that the loan, if approved, would never reach its intended purpose — claiming it would ultimately be misappropriated by corrupt Ukrainian officials, an allegation Kyiv has not formally addressed.
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