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Ukraine’s parliament has ratified an agreement with the European Union for a €90 billion loan package, which includes strict conditions related to democracy, the rule of law, and institutional reforms.
The decision was supported by 298 members of parliament during a session on May 28. The agreement was signed on May 27 between Ukraine, the European Commission representing the EU, and the National Bank of Ukraine acting as the borrower’s agent.
According to Finance Minister Serhii Marchenko, €60 billion of the total package will be allocated to strengthening Ukraine’s defense capabilities, while €30 billion will go toward supporting the state budget. He also noted that repayment is expected to be covered by future Russian reparations after the war ends.
The agreement includes conditionality clauses requiring Ukraine to maintain democratic standards, uphold the rule of law, ensure judicial independence, continue anti-corruption reforms, and preserve macroeconomic stability. It also requires regular reporting on financial and economic indicators to the European Commission.
Failure to comply with these democratic and governance standards could result in the obligation to repay the loan under the terms of the agreement.
The disbursement of three tranches of aid is linked to several policy benchmarks, including maintaining democratic institutions and multi-party parliamentary systems, ensuring human rights protections, and strengthening anti-corruption frameworks. Additional requirements include central bank independence, improved governance of state-owned enterprises and banks, and enhanced fiscal transparency.
The memorandum also outlines structural reforms such as tax policy changes, customs reform, digital platform taxation, continuation of a 5% military levy for three years, updates to public finance management strategy, and alignment with EU corporate tax directives aimed at preventing tax avoidance. It further includes reforms in customs administration, budget planning for 2027–2029, and changes to auditing and public oversight institutions.
Lawmakers also approved an accelerated procedure for the immediate signing of the bill by the Speaker of Parliament.
