Czech Republic, Hungary, and Slovakia not to be involved in implementing EU summit decision to provide Ukraine with EUR 90 bln loan from EU budget
Three European Union member states – the Czech Republic, Hungary, and Slovakia – will not participate in the implementation of the decision to provide Ukraine with a EUR 90 billion loan from the EU budget.
This follows from the conclusions adopted during the European Council meeting on financing for Ukraine. The text of the conclusions was published on Friday morning.
“In the meantime, with a view to ensuring the necessary financial support for Ukraine as from the second quarter of 2026, including its military needs, the European Council agrees to provide a loan to Ukraine of EUR 90 billion for the years 2026-2027 based on EU borrowing on the capital markets backed by the EU budget headroom. By means of enhanced cooperation (Article 20 TEU) in respect of the instrument based on Article 212 TFEU, any mobilisation of resources of the Union’s budget as a guarantee for this loan will not have an impact on the financial obligations of the Czech Republic, Hungary and Slovakia,” the document reads.
The conclusions explain that this loan will be repaid by Ukraine only after receiving reparations. “Until then, these assets will remain immobilised and the Union reserves its right to make use of them to repay the loan, in full accordance with EU and international law,” the EU leaders noted.
The European Union also noted that in line with the European Council’s previous conclusions “which underline that, subject to EU law, Russia’s assets should remain immobilised until Russia ceases its war of aggression against Ukraine and compensates it for the damage caused by its war, the European Union, given the unprecedented situation, adopted on the basis of Article 122 TFEU exceptional, temporary and duly justified emergency measures immobilising such assets on a more sustained basis,” the legislative basis for making this decision is substantiated.
Furthermore, the European Council called on the Council of the EU and the European Parliament to continue working on the technical and legal aspects of the instruments establishing a Reparation Loan based on cash balances linked to Russia's immobilised assets.
The conclusions also state that the European Council underlines the importance of the following elements with regard to the loan to be provided to Ukraine: a) the strengthening of the European and Ukrainian defence industry; b) Ukraine's continued adherence to the rule of law, including the fight against corruption; c) the specific nature of the security and defence policies of some Member States and the security and defence interests of all Member States.