Ukrainian President Volodymyr Zelenskyy has officially submitted Draft Law No. 0376 to the Verkhovna Rada, seeking the urgent ratification of a €90 billion loan agreement with the European Union. As indicated by the official bill card on the parliamentary portal, this legislative initiative is key to unlocking a massive macro-financial aid package designed to cover Ukraine’s critical military and budgetary needs.
The agreement outlines the allocation of up to €45 billion for the fiscal year 2026. This financial assistance is divided into two main components. The defense pillar, accounting for up to €28.3 billion, will be directly allocated to the procurement of modern weaponry, ammunition, and the rapid expansion of Ukraine’s domestic defense-industrial complex. The remaining €16.7 billion forms the budget stabilization pillar, which will be utilized to maintain overall macroeconomic stability and cover the state’s substantial budget deficit.
Of the budgetary portion, up to €8.35 billion will be distributed as direct macro-financial assistance, while another €8.35 billion will be processed through the established Ukraine Facility mechanism. However, access to these funds requires strict adherence to structural reforms. According to the signed Memorandum of Understanding, the budget support will be disbursed in three successive tranches of €3.2 billion, €3.7 billion, and €1.45 billion.
Each disbursement is strictly tied to specific benchmarks. To receive the first tranche, Kyiv must introduce draft legislation to eliminate tax exemptions on international parcels and tax digital platforms—reforms that have already met with significant resistance in the Ukrainian parliament. The second tranche demands the complete adoption of these bills, while the third requires a comprehensive overhaul of preferential tax regimes.
The €90 billion loan program, initially approved by the EU on April 23, features a unique repayment model: the EU budget will cover the loan’s interest, and Ukraine will only be liable to repay the principal once Russia has fully paid war reparations. Ratifying this agreement is a vital step for Kyiv to ensure its military and economic survival through 2026.