EU's Massive Loan Boosts Ukraine's Defense and Economy Amid Ongoing Conflict

The European Union plans a new loan program to support Ukraine's military and economy over the next two years. The 90 billion euro loan will aid Ukraine's defense and economic recovery. The EU seeks contributions from other nations to meet Ukraine's needs, emphasizing the importance of pro-democracy reforms.

The European Union has announced a significant new loan program primarily aimed at supporting Ukraine's military efforts over the next two years. European Commission President Ursula von der Leyen detailed the plan on Wednesday, highlighting that the initiative will also inject billions into Ukraine's war-stricken economy.

In a decision made last month, EU leaders consented to provide Ukraine with loans amounting to 90 billion euros (USD 105 billion) for 2026 and 2027. Ukraine will repay the funds post-war, contingent on reparations from Russia for the extensive damages caused over almost four years of conflict.

The European Commission, anticipating further support from global partners, designs this financial backing to empower Ukraine's defense while promoting economic stability, conditionally requiring the implementation of robust pro-democracy reforms within the country.

(With inputs from agencies.)