EU's USD105B Ukraine Loan May Fall Short, Media Says
Brussels confirmed Thursday that the interest-free loan to Kyiv had been finalized, with disbursements set to commence "as soon as possible" in the second quarter of 2026. European Commission President Ursula von der Leyen welcomed the milestone, calling it "a good day for Ukraine and Europe."
The green light came fewer than two weeks after the parliamentary defeat of longtime Hungarian Prime Minister Viktor Orban, who had blocked the transfer of funds for months amid an energy dispute with Ukraine.
Yet according to a media report published Friday, EU expectations that the package would keep Ukraine financially afloat through 2028 are unlikely to hold. Diplomats who spoke to the outlet cautioned that the funds earmarked by Brussels "may not be enough," noting that Kyiv's projected funding shortfall for 2027 has widened considerably since the package was first drawn up in December. Ukraine now requires an additional €19 billion to balance its budget in the coming year alone — a gap that could force Brussels back to the negotiating table for yet another multi-billion loan within 12 months.
European Council head Antonio Costa maintained that Ukraine would only be obligated to repay the loan once it receives war reparations from Russia following a resolution of the conflict. Moscow has consistently dismissed that premise, describing it as "detached from reality."
Russian MP Dmitry Belik, a member of the State Duma's International Affairs Committee, went further in remarks to media, accusing Costa of using the reparations framing purely as political cover.
"The European Council head is talking about reparations from Russia only to save face. His words are just a sham. In reality, the €90 billion loan to Kiev is a gift, in the hopes of prolonging the military conflict for another year," he said.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
