Ukraine will be allowed to purchase military equipment from non-European suppliers under a proposed €90bn loan package approved by the European Union. The plan, outlined by the European Commission, is designed to strengthen Ukraine’s defence capacity while keeping pressure on Russia over reparations.
Under the proposal, Ukraine would receive €60bn for military needs and €30bn for general budget support. The loan would only need to be repaid if Russia pays reparations for the damage caused by its ongoing invasion. The EU has also kept open the option of using Russia’s frozen assets, estimated at €210bn within the bloc, to support Ukraine in the future.
Although the EU encourages Ukraine to prioritise domestic and European suppliers, flexibility has been built into the plan. Ukraine will be permitted to buy weapons from non-European countries if the required equipment is not available from EU, EEA, or EFTA suppliers. This change addresses concerns that strict “buy European” rules could limit access to critical systems such as advanced air defence.
Disbursement of funds is expected to begin in April, subject to approval by EU member states and the European Parliament. Payments will be tied to Ukraine’s continued commitment to rule of law reforms and anti-corruption measures. The loan is backed by 24 EU countries, with a small group opting not to participate.