Ukraine’s parliament is expected to vote on Thursday to ratify a major European Union loan worth 90 billion euros, aimed at easing the country’s strained finances during the ongoing war with Russia. The vote marks a critical step in securing long-term financial stability and continued international support. The decision comes as Ukraine faces mounting fiscal pressure and rising defence spending needs.
The loan deal was previously blocked after Hungary maintained a veto, but the restriction was lifted last month by the new Hungarian government. Ukrainian President Volodymyr Zelenskyy has formally submitted the ratification documents, including a memorandum of understanding on macro-financial assistance signed last week. Officials say the agreement is vital for sustaining government operations.
Read more: Zelensky confirms 10-year defence agreements
Under the arrangement, 8.35 billion euros will be allocated this year in instalments for budget support. Disbursement is tied to Ukraine implementing tax reforms demanded by the International Monetary Fund. However, lawmakers have shown resistance to some of the proposed fiscal legislation, slowing the approval process.
Some of the disputed measures include tax increases on imported parcels and new levies on digital platform income. Despite political debate, the International Monetary Fund has continued monitoring Ukraine’s reform progress through its ongoing lending programme. An IMF mission recently arrived in Kyiv for its first review of the $8.1 billion support package approved in February.
Read more: Zelensky urges EU to seize Russian oil now
Ukraine continues to rely heavily on foreign aid as most domestic revenue is directed toward defence spending. Parliament is also expected to approve budget changes to increase military expenditure, supported by the EU loan. The financial assistance is seen as crucial for maintaining economic stability amid the prolonged war with Russia.