EU approves €90B loan to Ukraine — Recommends boosting European and Ukrainian defense industries

The EU has approved a €90 billion interest-free loan to Ukraine to support its military and economic needs through 2026–2027 — funded via joint EU borrowing, not frozen Russian assets, after Hungary blocked the latter plan.

The loan aims to keep Ukraine’s state functioning and boost its defense industrial base, covering roughly two-thirds of its IMF-estimated funding gap. Ukraine welcomed the deal, though it falls short of the more ambitious asset-repurposing mechanism originally proposed.