EC's defense commissioner expects Ukrainian loan to finance Kyiv's defense needs to be unblocked
European Commissioner for Defence Andrius Kubilius has listed the EU's EUR 90 billion loan to Ukraine for 2026-2027 as one of the EU's unresolved defence issues and hopes for progress after the parliamentary elections in Hungary.
"Although the current Hungarian government agreed to this at the European Council meeting in December, it subsequently blocked an amendment to the multiannual financial framework that would allow for common EU borrowing on capital markets. But now the elections are over. The people have spoken. A new wind has blown. In any case, we are ready to implement the loan as soon as we receive the green light," the European Commissioner said on Wednesday at a hearing of the European Parliament's Committee on Security and Defence.
"We are taking the necessary steps. For example, on April 1, the Board [of the European Commission] approved the financing strategy for Ukraine and the first defense production schedules for drones. Work is also underway at the EU Council level. The financing strategy is being discussed for approval by the Council's executive decision," Kubilius continued.
According to him, Ukraine has requested EUR 28.3 billion in defense assistance for 2026. "The first phase of the program focuses on drones produced by Ukraine's advanced defense industry. In subsequent phases, we expect greater participation from the European defense industry. The more cooperation between the Ukrainian and European defense industries, the better," the EC member stated.
Kubilius added that, in addition to current challenges, the European Commission also has new proposals. He recalled the recent presentation of the AGILE program. "This is a program to enhance defense readiness, support innovative small and medium-sized enterprises, and learn from Ukraine's experience. The goal of AGILE is to rapidly deliver innovative defense technologies and products to the armed forces," the European Commissioner for Defense explained.