The European Commission submitted a proposal for a decision to the Council of the European Union on Friday 30 October to allocate the €45 billion available to Ukraine under the EU’s €90 billion loan for 2026 and 2027.
On the basis of a positive assessment of the financing strategy submitted by Kyiv for next year, the Commission proposes allocating more funding to military expenditure in 2027 than in 2026. Support for Ukraine’s budgetary expenditure would therefore fall from €16.7 billion to €13.3 billion, while military assistance would rise from €28.3 billion to €31.7 billion.
On Friday, European leaders welcomed Canada’s participation in the EU loan for Ukraine for the period 2026–2027, with a Canadian financial contribution of around €500 million, according to Canadian Prime Minister Mark Carney (see EUROPE 13972/1). The United Kingdom’s participation in the loan was agreed in July, subject to a “fair and proportionate” financial contribution from the UK (see EUROPE 13914/28).
Budget shortfall. In a document annexed to the proposal, the European Commission provides a more precise breakdown of the additional funding shortfall that Ukraine will face next year: €40.9 billion for military support and €27 billion for budgetary support.
It warns that this baseline scenario is subject to geopolitical and financial risks which, if they materialise, would increase the budgetary support required to €30 billion.
The European Council has tasked the European Commission with presenting options for closing Ukraine’s funding shortfall (see EUROPE 13968/15, 13962/1).
Read the proposal from the European Commission: https://aeur.eu/f/o70 ; and its annex: https://aeur.eu/f/o71 (Original version in French by Mathieu Bion)