Ukrainian Parliament Ratifies EU Loan to Increase Defense Spending

Ukraine’s parliament has ratified a multi-billion-euro loan agreement with the European Union, which will allow Kyiv to boost defense spending amid the war with Russia, now in its fifth year.

Ukrainian parliamentarians backed the loan on May 28 with 298 votes—far more than the 226 required for a majority.

After the vote, Ukrainian President Volodymyr Zelenskyy thanked parliamentarians, writing on X that the funds “will strengthen our resilience and help protect the lives of our people, rebuild what has been destroyed by Russian strikes, and defend our independence.”

He also extended his gratitude to EU partners “for their readiness to stand with Ukraine and provide meaningful support for our defense, our diplomacy, and our recovery.”

Both the EU and Ukraine agreed to a total of 90 billion euros ($105 billion) in loans, with half to be paid this year and the other half in 2027.

European Commission President Ursula von der Leyen said that finalizing the loan would mean the first disbursement would be made in June. The Ukrainian government expects to receive 3.2 billion euros ($3.7 billion) next month.

The loan will ease pressure on the Ukrainian state budget, with 13.2 billion euros ($15.4 billion) of this year’s allocation going to cover the budget gap. The remaining 31.8 billion euros ($37 billion) will go toward defense, meaning Ukraine’s overall defense budget will rise to a record 100 billion euros ($116.4 billion).

The EU formally approved the loan offer on April 23, after Hungary lifted its veto.

Loan payments are conditional on Ukraine’s progress with reforms, notable on tackling corruption.

Gripen Jets for Ukraine

On May 28, Ukraine struck a deal with Sweden to buy 20 new Gripen fighter jets, with Stockholm agreeing to donate 16 older models next year.

The agreement was announced during a press conference between Zelenskyy and Swedish Prime Minister Ulf Kristersson at Uppsala air base in Sweden, where two Gripen jets were on display.

“We need these jets, and for us this is really a new page for Ukraine,” Zelenskyy said, adding Kyiv planned to buy all the 150 new jets stipulated in the original letter of intent signed last year.

“God bless, we ​will have enough financing for this,” the Ukrainian president said.

Zelenskyy said his government had earmarked 2.5 billion euros from the EU loan package for the craft, and deliveries of the new model are expected to reach Ukraine starting in 2030.

Zelenskyy said in a post on X that he expects to receive the first older Gripen models “within the next 10 months.”

“Importantly, these aircraft will come with the weapons package, which will also help protect us against Russian guided aerial bombs,” he said.

Zelenskyy added that Ukraine was using its aerial defenses to counter “massive drone attacks.”

“And Gripens, as part of Ukraine’s future Air Force, will also help counter the enemy’s aerial attacks,” he said.

Russia Threatens Further Strikes

The deal was struck days after an aerial assault by Russia on Kyiv that included the use of Oreshnik ballistic missiles—only the third time that the weapon, which is capable of carrying nuclear or conventional warheads, has been used since the start of the war in February 2022.

Zelenskyy said the largest number of Russian missiles fired on May 24 were directed at civilian locations in the capital, including residential areas.

The Russian Defense Ministry confirmed the use of Oreshniks, stating that it had used the hypersonic missiles to hit Ukrainian “military control and command facilities.” The ministry stated that the attacks were in retaliation after Ukraine hit “civilian facilities on Russian territory.”

Russia and Ukraine have both denied deliberately targeting civilian populations.

Russia has since threatened further strikes against Kyiv, advising foreign nationals and diplomats to leave.

The Russia-Ukraine war is now in its fifth year.

Reuters contributed to this report.