EU Agrees on 90 Billion Euro Loan Package for Ukraine, Drops Restrictions on Weapons Procurement Sources

France's "Buy European" Clause Dropped
Support to Begin in February with EU's Own Funds

Reuters, Yonhap News Agency

The European Union (EU) has agreed to provide Ukraine with 90 billion euros (about 155.1573 trillion won) in loan support. The EU has decided not to implement the previously debated measure that would have restricted where Ukraine could purchase weapons. As a result, Ukraine will be able to use EU funds to import weapons from the United States and other third countries.

On the 4th (local time), the Council of the EU announced in a press release that it "reached an agreement on the legal framework to implement the decision taken at the European Council meeting in December last year to provide 90 billion euros in loans to support Ukraine's military and economic needs from 2026 to 2027." It specified that 60 billion euros of the loan package will be used for defense-related expenditures, while the remaining 30 billion euros will be used for state operations and to cover Ukraine's fiscal needs.

The Council decided not to enforce the restriction on weapons procurement channels that had been advocated by some member states, including France. Accordingly, Ukraine will now be able to use the European loan support not only to purchase European weapons, but also to import weapons from the United States and other third countries.

Previously, controversy arose among EU member states after the French government insisted that EU funds for Ukraine should be subject to a "Buy European" clause, limiting spending to the purchase of European-made weapons. Germany, the Netherlands, and others refused to accept the measure, arguing that it could disrupt Ukraine's weapons supply and constrain its defense capabilities.

The Council of the EU plans to begin disbursing funds in early the second quarter of this year. The EU had initially given serious consideration to a plan to lend to Ukraine using as collateral the Russian financial assets frozen in Europe, including those held at Euroclear, the central securities depository (CSD) in Brussels, Belgium. However, due to strong opposition from Belgium and other member states, it ultimately agreed instead to raise funds by issuing bonds backed by its own budget.