According to informed sources, the proposed fund could be part of the EU’s upcoming seven-year budget, which is expected to be unveiled later this month. If approved by member states during budget negotiations, the financing would begin in 2028, providing long-term financial support to war-affected Ukraine. The sources requested anonymity.
The initiative would shift the primary financial burden of Ukraine support from the United States to Europe. Former U.S. President Donald Trump’s administration has expressed skepticism toward additional aid for Kyiv and temporarily paused the delivery of certain weapons last week, though the decision was reversed on Monday.
Since the full-scale invasion began three and a half years ago, the EU has already provided nearly €160 billion in aid to Ukraine. This includes a €50 billion fund offering grants and loans through 2027. In coordination with the G7 countries, the EU has also launched a $50 billion loan-based facility financed from profits generated by frozen Russian central bank assets.
The new funding mechanism is expected to follow a similar structure, with the European Commission— the EU’s executive arm—disbursing grants and concessional loans to Ukraine. Most disbursements would be tied to reform progress required for EU accession.
This proposal is being considered alongside other options and will be discussed ahead of the release of the next Multiannual Financial Framework (MFF), scheduled for publication on July 16. Some components may be disclosed at a later stage, the sources added.
