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Subject matter
1. This Regulation implements enhanced cooperation on the establishment of an instrument for providing Union assistance to Ukraine for 2026 and 2027 in the form of a loan to be repaid by reparations due by Russia (the ‘Ukraine Support Loan’). 2. It lays down the objective of the Ukraine Support Loan, its financing, the forms of Union funding under it and the rules for providing such funding.
Objective of the Ukraine Support Loan
1. The general objective of the Ukraine Support Loan shall be to provide financial and economic assistance to Ukraine in a predictable, continuous, orderly, flexible and timely manner with a view to supporting Ukraine in covering its financing needs resulting particularly from Russia’s war of aggression against Ukraine and Russia’s non-payment of reparations due. 2. To achieve the general objective referred to in paragraph 1, the specific objectives of the Ukraine Support Loan shall be: (a) to support macro-financial stability via the easing of Ukraine’s external and internal financing constraints; and (b) to support Ukraine’s defence industrial capacities through economic, financial and technical cooperation.
Definitions
For the purposes of this Regulation, the following definitions apply: (1) ‘defence product’ means goods, services and works that fall within the scope of Directive 2009/81/EC, as set out in Article 2 thereof; (2) ‘EEA EFTA State’ means a Member of the European Free Trade Association which is a member of the European Economic Area; (3) ‘ERA Loans’ means eligible bilateral loans and the Union’s macro-financial assistance loan pursuant to Regulation (EU) 2024/2773; (4) ‘Non-Participating Member State’ means a Member State which does not participate in the enhanced cooperation established by Decision (EU) 2026/258; (5) ‘Participating Member State’ means a Member State which participates in the enhanced cooperation established by Decision (EU) 2026/258; (6) ‘other products for defence purposes’ means any good, service and work other than those falling within the scope of Directive 2009/81/EC, as set out in Article 2 thereof, which are necessary for or aimed at defence purposes.
Available assistance under the Ukraine Support Loan
1. The Ukraine Support Loan shall be for a maximum amount of EUR 90 000 000 000. That amount shall be made available to Ukraine in accordance with Ukraine’s financing needs, as provided for in the Ukrainian Financing Strategy approved in accordance with Article 8. 2. The Ukraine Support Loan shall be available until 31 December 2027. It shall be made available by the Commission in instalments, which may be disbursed to Ukraine in one or more tranches. The disbursement of all such tranches shall take place by 31 December 2028. 3. If the financing needs of Ukraine decrease fundamentally during the period of availability of the Ukraine Support Loan, including in the event of a settlement by Russia of Ukraine’s war damages, the Commission, acting in accordance with the examination procedure referred to in Article 27(3), may reduce the undisbursed amount of the Ukraine Support Loan or cancel it. 4. In accordance with Article 332 TFEU, Non-Participating Member States shall be entitled to an adjustment in accordance with Article 11 of Regulation (EU, Euratom) No 609/2014 in respect of expenditure financed from the voted budget resulting from the implementation of the enhanced cooperation other than administrative costs entailed for the institutions, borne by the Union budget. Such adjustment shall in particular comprise any debt service costs as well as calls on the guarantee.
Preconditions for assistance under the Ukraine Support Loan
1. A precondition for granting the assistance under the Ukraine Support Loan shall be that Ukraine continue to uphold and respect effective democratic mechanisms, including a multi-party parliamentary system and the rule of law, and to guarantee respect for human rights, including the rights of persons belonging to minorities. Upholding and respecting the rule of law shall include the fight against corruption. 2. The Commission and the European External Action Service (EEAS) shall monitor the fulfilment of the precondition set out in paragraph 1 of this Article, in particular before the adoption of the Council implementing decision referred to in Article 8 and the release of funds referred to in Article 23. Furthermore, that monitoring shall take into account the relevant recommendations of international bodies, such as the Council of Europe and its Venice Commission. The Commission shall inform the European Parliament and the Council of its monitoring.
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Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.