On October 30, the European Commission launched a procedure requiring European Union member states to approve the final EUR 45 billion loan for Ukraine. According to reports, this amount equals approximately $50.4 billion and will be disbursed by the end of 2027, with the majority of funds planned to be channeled into the defense industry. The initiative marks the next step in implementing the loan program agreed upon by EU leaders in late 2025.
Mechanism and Total Program Amount
Previously, the European Union approved a EUR 90 billion loan program for Ukraine until the end of 2027, half of which — EUR 45 billion — was scheduled for payout already in 2026. The mechanism proposed on October 30 concerns precisely the second half of the sum: EU member states must grant it formal approval. The funds were raised through joint EU borrowings after Brussels failed to reach an agreement on using frozen Russian assets.
Brussels' Assessment and the Position of the Commission President
The European Commission positively assessed the financing strategy presented by Ukraine. "With this proposal, we provide Ukraine with much-needed predictability and help sustain the operation of essential state services," stated European Commission President Ursula von der Leyen. Thus, Brussels emphasizes that the goal of the mechanism is not a one-time payout, but the creation of a sustainable funding schedule for the remaining period until the end of 2027.
Ninth Tranche and Unfulfilled Conditions
Concurrently with launching the procedure for the EUR 45 billion, the European Commission proposed approving a payout of EUR 8.04 billion for Ukraine under the Ukraine Facility program — EUR 264.6 million less than Kyiv requested. The reason is the failure to meet certain conditions for receiving the ninth tranche: out of 18 verified steps, 16 were deemed satisfactory, while partial fulfillment of one requirement and an additional step in nuclear safety were taken into account. After factoring in funds already received as advances, the actual payout will be around EUR 7.8 billion, with a final decision expected from the EU Council by the end of November.
Frozen Assets and the US Position
The fate of frozen Russian assets remains a subject of dispute. According to the Financial Times, the US proposed that Europe unfreeze a portion of these funds and transfer them under Washington's control, but the European side refused. In early October, according to the same reports, Brussels also refused to prematurely disburse funds planned for 2027, demanding that Kyiv first fulfill promised reforms. Separately, the FT notes that Ukraine could face a financing deficit of EUR 70 billion in 2027, prompting the European Union to urge other international partners to increase their support.
Timelines and Next Steps
The final decision on approving the second part of the loan rests with the EU Council, which is expected to convene on the matter before the end of November 2026. For Kyiv, adhering to the reform schedule remains key — upon which, according to Brussels, the pace and volume of subsequent disbursements depend — while for Europe, the challenge lies in coordinating an intra-union approach to frozen assets and attracting additional donors for 2027.
