The Council has defended the €90 billion loan for Ukraine agreed by EU leaders in December 2025, detailing its intended use for defence and budget support, oversight mechanisms, and safeguards to protect EU taxpayers. In a written answer to MEP Friedrich Pürner (NI), the Council explained that the loan, backed by EU budget headroom, will be repaid by Ukraine only once reparations are received, with immobilised Russian assets serving as a potential backstop.
The answer, published on 23 April 2026, responds to Pürner's priority question of 5 January 2026, which raised concerns about the loan's purpose, corruption risks, and financial liability for EU taxpayers. The Council clarified that the European Council agreed on 18 December 2025 to provide the loan via enhanced cooperation, exempting Czechia, Hungary, and Slovakia from budgetary guarantees. On 14 January 2026, the Commission proposed splitting the loan: €60 billion for Ukraine's defence industrial capacities and €30 billion for macro-financial assistance or budget support under the Ukraine Facility.
Oversight and safeguards The Council pointed to recital 33 of the Commission proposal, which requires sound financial management and a single account monitored by the Commission. It reiterated that the loan will be repaid from future reparations, and that immobilised Russian assets may be used if needed, in line with EU and international law. The answer did not specify audit intervals or penalties for misuse, but noted that detailed requirements may be set in a bilateral arrangement with Ukraine.
Policy direction and follow-up The answer signals strong EU commitment to Ukraine's defence and fiscal stability, with a clear preference for using frozen Russian assets as collateral. The legislative process is ongoing: the Council is expected to examine the Commission proposal in the coming months, with adoption likely by mid-2026. The enhanced cooperation mechanism ensures that dissenting member states are not financially exposed, addressing sovereignty concerns while maintaining EU unity.
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