Ukraine's €90bn EU loan is ready to roll out — but where will the money go?

The European Commission's €90 billion loan package for Ukraine is now in its final phase, with most member-state approvals secured. Brussels-Kyiv talks are shaping the framework for how the funds will be allocated, and three main lines have emerged: defence industry, energy infrastructure and budget support.

In defence industry, the aim is to expand Ukraine's domestic production capacity and set up joint production lines with EU member states. In energy infrastructure, the focus is on repairing the electricity grid worn down over winter, modernising distribution stations and accelerating the shift to renewables.

The budget-support line covers Ukraine's public-sector salaries, social assistance and the continued delivery of essential public services. The EU Commission said use of the funds will be subject to independent audits and reported quarterly to the public under a transparency commitment. Poland and the Baltic states had conditioned support on continued military aid.