The Draft Law was introduced by the President of Ukraine, Volodymyr Zelenskyy. The Committee on Ukraine's Integration into the EU was the lead committee responsible for consideration of the document.
The Law provides for the ratification of Ukraine’s international agreements establishing a legal framework for the mobilisation of up to EUR 90 billion, in particular, within macro-financial assistance under the Loan to support Ukraine.
The Loan Agreement sets out detailed technical, financial and procedural aspects of the mobilisation of up to EUR 90 billion, the allocation of funds to budgetary and defence components, as well as the repayment mechanism (exclusively through reparations from the russian federation).
The Memorandum of Understanding sets out the general terms for the receipt of a portion of budget support, including timelines, amounts and the purpose of the assistance, as well as the conditions for implementing policy measures under three pillars: domestic revenue mobilisation, sustainability and efficiency of public expenditure, and public financial management systems.
The implementation of the Loan Agreement and the Memorandum of Understanding will be carried out within the appropriations allocated to the relevant authorities under the State Budget of Ukraine for the respective year. Once ratified, the Loan Agreement and the Memorandum of Understanding will enable Ukraine to mobilise up to EUR 90 billion in financial resources from the European Union in 2026–2027 to support the State Budget and strengthen defence capabilities.
In 2026, the total volume of support will amount to up to EUR 45 billion, allocated across two key components: the defence component (up to EUR 28.3 billion), to be used for the procurement of weapons and strengthening defence-industrial capacity; and the budgetary component (EUR 16.7 billion), aimed at ensuring macroeconomic stability and covering the State Budget deficit.
At the same time, the budgetary component is evenly distributed through two instruments: up to EUR 8.35 billion provided directly as macro-financial assistance (covered by the Memorandum of Understanding), and up to EUR 8.35 billion channelled through the Ukraine Facility mechanism.
Under the Memorandum of Understanding, the assistance will be disbursed in three tranches, with indicative amounts of EUR 3.2 billion for the first tranche, EUR 3.7 billion for the second tranche, and EUR 1.45 billion for the third tranche.