Residents stand at the site of apartment buildings hit by a Russian air strike in Kramatorsk in Donetsk region, Ukraine February 8, 2026. (Photo: Reuters)

The funding is desperately needed. Ukraine’s coffers are running very low as the conflict with Russia approaches its 4th year.

The European Parliament voted 458 to 140 for the loan, which will cover two-thirds of Ukraine's financial needs for 2026 and 2027. Two-thirds of the loan will be used to strengthen Ukraine’s defense and procure military equipment, and the rest will be used for non-military expenses.

Brussels will cover the interest, around 3.5 billion USD per year, through the EU's budget.