The interest payments on this loan will be covered by the European Union, and Ukraine will only be able to repay the debt after Russia fulfills its obligations regarding reparations. Meanwhile, Hungary, Slovakia, and the Czech Republic have refused to participate in the financing, while the other 24 member states are ready to allocate funds. The first tranche is expected to be received by Kyiv at the beginning of the second quarter of 2026.
France has persistently insisted on a condition that priority in arms procurement should be given to manufacturers from Ukraine and EU countries. Supplies from third countries, including the USA, will only be possible in cases concerning specialized weapons produced outside the EU, such as Patriot air defense systems. France's initiative to allow the participation of the UK and other partner countries in the program, provided they make financial contributions, was also supported.
Earlier, in December 2025, EU leaders agreed to provide an interest-free loan. At that time, it was also decided to abandon the idea of financing through frozen Russian assets and to choose a loan mechanism backed by the EU budget guarantees.
This financial support represents the largest joint military-financial program of the EU for Ukraine. Previously, assistance was mainly provided on a bilateral basis or through funds not intended for military needs. The agreement is currently in the final stages of coordination in the European Parliament, and its final approval is expected in the coming weeks.
