An important detail of the agreement is that the interest payments on the loan will be covered by the European Union. Ukraine will begin repaying the debt only after Russia fulfills its obligations regarding reparations. However, Hungary, Slovakia, and the Czech Republic have refused to participate in the financing, while the other 24 member states have agreed to allocate funds. The first tranche is expected at the beginning of the second quarter of 2026.
France insisted on the condition that priority in arms procurement should be given to manufacturers from Ukraine and EU countries. Supplies from third countries, including the USA, will be permitted only in cases where specialized weapons produced outside the EU are necessary, such as Patriot air defense systems. Paris's initiative to allow the participation of the UK and other partner countries in the program in exchange for their financial contributions was also supported.
EU leaders decided to provide an interest-free loan back in December 2025, rejecting the proposal to finance from frozen Russian assets and opting for a loan mechanism backed by the EU budget guarantees.
This aid package has become the largest joint military-financial initiative of the EU concerning Kyiv, whereas earlier support was mainly provided on a bilateral basis or through non-military funds. The agreement is currently undergoing final stages of approval in the European Parliament, and its final approval is expected in the coming weeks.
