The European Commission on 30 October announced plans to disburse about €45 billion ($51 billion) next year under its Ukraine Support Loan, with roughly €31.7 billion ($35 billion) earmarked for Ukraine's defence industrial capacity. The remaining €13.3 billion ($14.8 billion) would be split equally between the Ukraine Facility and Macro-Financial Assistance, the latter tied to an International Monetary Fund support program.
European Commission President Ursula von der Leyen said the proposal provides Ukraine with "much-needed predictability" and helps maintain essential public services. She added that the topic is "high on the agenda" at the EU-Canada summit in Montreal, and said, "Together with our allies, we must also do everything in our power to mount pressure on Russia to stop its barbaric war of aggression."
The €45 billion package is the second half of the EU's €90 billion loan approved in April, two-thirds of which is allocated for defence. The first tranche, being disbursed through 2026, included €16.7 billion in budget support and €28.3 billion for defence industrial capacity.
The Commission stressed that the budgetary support remains tied to conditions relating to Ukraine's rule of law and anti-corruption reforms, as well as economic resilience and sustainability. The proposal must now be approved by the Council of the EU, with member states making the final decision on the allocation of funds.
Despite the loan, Kyiv still needs to bridge an estimated €70 billion budget gap next year, as economic pressures from the war mount. Kyiv has already requested additional funding beyond the €90 billion package. Other partners are beginning to step up: in October, Norway pledged $9 billion for Ukraine and the UK announced a $13 billion pledge, its largest ever. Canada is also widely expected to join, though the scope of its potential commitment remains unclear.
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Allocation of EU's €90 billion Ukraine loan by tranche and purpose (billion euros)
billion euros
The second tranche is the new proposal for 2027. Source: Kyiv Independent
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Analysis
Why This Matters
The EU plan covers a significant share of Ukraine's 2027 needs but leaves a €70 billion gap that must be filled by Kyiv and other partners.
The heavy weighting toward defence industrial capacity indicates Europe's strategic priority is sustaining Ukraine's military capability.
The conditions attached to the aid maintain pressure on Kyiv to pursue anti-corruption and rule-of-law reforms.
Background
The EU approved a €90 billion loan for Ukraine in April 2026, with two-thirds allocated for defence. The first half is being disbursed through 2026, providing €16.7 billion in budget support and €28.3 billion for defence industrial capacity. The second half, now detailed, covers 2027. The loan does not cover all of Ukraine's needs; Kyiv has requested additional funding, and other allies have made pledges including Norway's $9 billion and the UK's $13 billion in October, with Canada expected to follow.
Key Perspectives
What to Watch
Approval by the Council of the EU: member states must adopt the proposal before funds can flow.
Whether Ukraine meets the conditions tied to the budgetary support.
Additional pledges from other partners, particularly Canada, to help close Ukraine's budget gap.
12 claims in this story checked against 1 source: 12 supported.
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SupportedThe European Commission unveiled a €45 billion Ukraine spending plan for 2027.Kyiv Independent: “EU lays out 45 billion euro spending plan for Ukraine in 2027.”
SupportedThe bulk of the funds is allocated to defence.Kyiv Independent: “with the vast majority allocated to defense.”
SupportedThe €45 billion package is the second half of a €90 billion loan.Kyiv Independent: “The 45-billion-euro package is the second part of the EU's 90-billion-euro ($100 billion) loan approved in April”
SupportedOn 30 October, the Commission announced plans to disburse about €45 billion ($51 billion) next year under its Ukraine Support Loan.Kyiv Independent: “The European Commission on Oct. 30 unveiled plans on how to disburse about 45 billion euros ($51 billion) next year under its Ukraine Support Loan”
SupportedAbout €31.7 billion ($35 billion) is earmarked for Ukraine's defence industrial capacity.Kyiv Independent: “Roughly 31.7 billion euros ($35 billion) have been earmarked to support Ukraine 's defense industrial capacity”
SupportedThe remaining €13.3 billion ($14.8 billion) would be split equally between the Ukraine Facility and Macro-Financial Assistance, with the latter tied to an IMF support program.Kyiv Independent: “The rest — 13.3 billion euros ($14.8 billion) — would be split equally between two financial support mechanisms for Ukraine: the Ukraine Facility and the Macro-Financial Assistance, with the latter tied to the International Monetary Fund (IMF) support program.”
SupportedVon der Leyen said the proposal provides Ukraine with “much-needed predictability” and helps maintain essential public services.Kyiv Independent: “"With today's proposal, we are providing Ukraine with much-needed predictability and helping maintain essential public services," European Commission President Ursula von der Leyen said”
SupportedVon der Leyen said the topic is “high on the agenda” at the EU-Canada summit in Montreal.Kyiv Independent: “adding that the topic is "high on the agenda" at the EU -Canada summit in Montreal.”
SupportedVon der Leyen said, “Together with our allies, we must also do everything in our power to mount pressure on Russia to stop its barbaric war of aggression.”Kyiv Independent: “"Together with our allies, we must also do everything in our power to mount pressure on Russia to stop its barbaric war of aggression."”
SupportedTwo-thirds of the €90 billion loan is allocated for defence.Kyiv Independent: “two-thirds of which is allocated for defense.”
SupportedThe first half, being disbursed throughout 2026, included €16.7 billion in budget support and €28.3 billion for defence industrial capacity.Kyiv Independent: “The first half of the loan, which is being disbursed throughout 2026, included 16.7 billion euros ($18.6 billion) in budget support and 28.3 billion euros ($31.6 billion) for defense industrial capacity.”
SupportedKyiv still needs to bridge an estimated €70 billion budget gap next year.Kyiv Independent: “Kyiv still needs to bridge its estimated 70 billion euros ($78 billion) budget gap next year”