The European Union Affairs Committee supports urgent EU loan to Ukraine
At its today’s sitting, the European Union Affairs Committee of the Riigikogu (Parliament of Estonia) decided to support the Government’s positions on granting a loan to Ukraine in 2026 and 2027 as a matter of urgency.
Chairman of the European Union Affairs Committee Peeter Tali explained that the European Union Regulation provided for granting Ukraine a support loan of EUR 90 billion for 2026 and 2027, of which EUR 60 billion would be allocated to military assistance and EUR 30 billion provided as general budget support. Estonia is therefore participating in enhanced cooperation between 24 Member States to take out a joint loan to finance the support loan to Ukraine, which in turn will be guaranteed by the European Union’s budget headroom.
“The EU loan is a matter of life and death for Ukraine, because Kyiv may otherwise run out of money by spring. We must help Ukraine survive as a country. Supporting Ukraine is extremely important for the free world and relates to the broader complex geopolitical situation,” Tali underlined. “Russia’s war in Ukraine continues with full force, Ukrainian cities and people are under terrorist attacks from Putin’s regime every day. There is no peace in sight. The Kremlin must pay for war damages.”
Therefore, the European Union Affairs Committee also supported the principle of the Regulation, according to which the European Union reserves the right to use Russia’s immobilised assets to repay the loan.
The European Union Affairs Committee also agreed with the Government’s position on the EU’s proposal that the costs associated with the loan would be covered by the Member States participating in enhanced cooperation. In 2027, when there are no available budgetary resources, it will be preferred to cover such costs through the Ukraine Loan Facility, in accordance with the European Commission proposal. From 2028 onwards, a solution will be sought for covering the loan costs that would not reduce the volume of loans and grants to Ukraine.
Head of Finance Section at the Permanent Representation of Estonia to the EU Andres Kuningas explained at the Committee sitting that Estonia as a country was not currently taking on any separate obligations, as the loan would be guaranteed by the EU budget headroom. He added that in a very long-term perspective – if reparations would not be paid and the EU would have to cover the loan itself – Estonia’s fair share of the 90 billion would be approximately EUR 209 million, but this would only become relevant if the EU were to make such a decision.
Kuningas also said that Hungary, Czechia and Slovakia would not be participating in the scheme, and the Commission had made a proposal to implement the European Council decisions by means of enhanced cooperation.
The sitting of the European Union Affairs Committee was also attended by Adviser of the Ministry of Finance Märten Ross.
Riigikogu Press Service
Gunnar Paal
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