And 2/3 of the 90 billion will be for military support, so 60 billion euros. With the military assistance, Ukraine can stand strong against Russia and at the same time it can integrate more closely into Europe's defense industrial base. Now how to use the funds? We will more or less structure it like we do in the SAFE proposal. The funds will be used to purchase equipment mainly from Ukraine, from the European Union, and the EEA countries. But if these necessary procurements are not possible in this region or in due time, then it might also occasionally be possible to acquire the equipment outside the European Union and the geographical region I've just described. So in general, European preference, but a cascading principle: European preference first, and then if not possible, then the purchase abroad. The budget support, so the 30 billion euros, is designed to help Ukraine to advance its reforms and to modernize the country. The investment is conditioned to reforms, also to bring Ukraine closer to European Union membership. This includes the commitment of Ukraine towards strong democratic processes, the rule of law, and anti-corruption measures. These conditions are nonnegotiable for any financial support. Our principles: investment and reform, also to make sure that Ukraine moves forward on its path of accession to the European Union. Then there's another element that I want to emphasize that was agreed in parallel to today's package in the European Council in December, that is that our proposal for the reparation loan remains on the table. It is for us also very important to send a stark reminder to Russia that we reserve the right to make use of the immobilized Russian assets. And the documents show that the assets will remain immobilized until the war ends and until reparations are being paid. You also see it reflected in the fact that Ukraine would not have to pay back the loan until reparations are being paid. So to conclude, today we're demonstrating our continued and steadfast support to Ukraine. We now of course count on the European Parliament and the Council to agree swiftly on these proposals so that we are able to give the first disbursement in April.
Thank you. Thank you, President and Commissioner, please.
Thank you. As we have just heard from the president today, we take really a next step in our support to build a stronger and more stable Ukraine. And this budgetary support package is about really much more than just financial assistance. It reconfirms that we Europeans continue to shoulder the lion's share of support for Ukraine to defend itself in the short term, but also prepare for its recovery, long-term prosperity, and EU membership. We also send a clear message that time is not on Russia's side. Ukraine's financing needs will be secured, and predictable budgetary support will be guaranteed in the form of a loan to be repaid by reparations due by Russia. Our proposal includes the Ukraine Facility as a pillar for disbursement of the loan, closely tying in a strict reform program to advance accession negotiations. This reflects our continued determination to support the decisive implementation by Ukraine of an accelerated reform agenda central for a credible EU accession path. We know that the reforms are difficult. They are difficult for any government, and even more so when a country is fighting a war. But the Ukraine Facility has a track record of effectively achieving these reforms for Ukraine's future under the most difficult circumstances. And it works. It has helped Ukraine to keep the course. The implementation of the Ukraine Plan has been broadly successful, with 63 steps completed out of 68 due by the last payment requests. And this was happening in the areas of rule of law, anti-corruption, energy market, public administration, and state-owned enterprise governance. But we all know that this work needs to continue for Ukraine's society and economy to grow stronger and to deliver its future prosperity and also social cohesion. The Ukraine Support Loan will build on these achievements and further prepare Ukraine for EU membership. At the same time, it is more than evident that we are operating in uncertain times. As explained by the president, our proposal therefore brings in the necessary flexibility to address Ukraine's urgent budgetary needs and unexpected financial needs. And today's decision will undoubtedly make us better equipped to navigate what is to come while keeping clear sight on our long-term objective for a secure and prosperous Ukraine with economic growth inside the European family.
Thank you. Good morning everyone. As the president said, we are now approaching the fifth year of Russia's full-scale invasion of Ukraine. Throughout this time, by bravely defending their homeland, Ukraine has also protected the entire European continent from Russian aggression. Europe can and must continue to provide Ukraine with the support it needs to ensure its financial stability and ability to defend itself. This is the only way we can secure a just and lasting peace, a peace which ensures real security for Ukraine and Europe in the long term. In December, EU leaders confirmed our resolve to help Ukraine to meet its urgent and sizable financing needs. Today we have taken the necessary step to put forward a proposal to deliver this crucial support. Allow me to highlight some important elements. The funds can be disbursed through either macro-financial assistance or the Ukraine Facility. On macro-financial assistance specifically, it is a tried and tested instrument for supporting Ukraine or countries in balance of payment difficulties. It is well suited to provide fast and flexible financial assistance while driving the implementation of meaningful reforms. It also complements and amplifies IMF programs as it has been demonstrated in Ukraine over the past decade. Both macro-financial assistance and the Ukraine Facility provide for strong conditionality, especially on the fight against corruption. The 60 billion euros indicatively allocated to support Ukraine's defense efforts will allow Ukraine to access the equipment it needs to defend itself, and at the same time it will provide a very significant boost to the rapidly developing European and Ukrainian defense industries. Finally, as said before, Ukraine will only repay the Ukraine Support Loan if it receives reparations from Russia for the destruction its war has caused. This is why the proposal also makes clear that, in line with the conclusion by the leaders, the Union reserves its right to use the cash balances from immobilized Russian assets held in the EU to repay the Ukraine Support Loan. Of course, time is of the essence, as the European Commission will work with legislators to ensure swift adoption of today's proposals. We will also liaise with Ukrainian authorities to prepare a financing strategy and ensure steps needed to operationalize the support swiftly. With regards to broader support from our international partners, the implementation of the G7 Extraordinary Revenue Acceleration Loans initiative is progressing well. 35 billion euros have already been disbursed to Ukraine from G7 partners and the EU, and we will continue to engage closely with international partners, including the G7, to ensure delivery on their commitments for 2026 and beyond. To conclude, supporting Ukraine is a litmus test for Europe. The outcome of Russia's brutal war of aggression against Ukraine will determine Europe's future. Today's proposal shows that we are determined to continue providing Ukraine with the support it needs, and it also represents a crucial investment in Europe's own security. Thank you.
Thank you. And we can now open the floor for questions. Yes, Sabina.
Thanks, Sabina Roset, news agency. There has been strong political attention on a possible buy European requirement. Will the loan apply the same eligibility rules on the geographical region of defense procurement as the SAFE regulation, and could you clarify how a possible derogation will work in practice to ensure that urgent deliveries are not late? And then if possible, I have a more technical question on the cost of servicing the debt. Does the Commission propose also specify how interest payments will be covered within the current EU budget, and if not, should we understand that the long-term solution is effectively being deferred to the MFF with the options being either a technical national contribution or reallocation from existing programs? Thank you.
Thank you. So let me remind you also that we'll have a technical briefing after this press conference. But President, I'll divide the answer between Valdis and me.
The first part of your first question. I think it is an important step forward that we have integrated in this loan the same principles as in SAFE. That we say, first of all and first and foremost, if possible, the procurement should take place in Ukraine, in the European Union, and in the EEA countries. Because for us, it is a lot of money. These are billions and billions that are being invested, and these investments should have a return on investment in creating jobs, in creating research and development that is necessary for us. We have in parallel to boost our defense industrial base for the sake of not only the loan but also for our own security. So there is a strong interest to give a strong incentive first and foremost to procure in the described region. But of course, Ukraine is at war with Russia and needs support timely. So if the capability is not available in the European Union or in the EEA countries or in Ukraine and not in due time, then it is possible to go outside of this region. And I think this is a very successful change that we have now introduced in the procurement rules. Commissioner, maybe on the second question, but we can go into details in the technical background.
Yes, on the second question. Indeed, our proposal also for this interest loan subsidy for Ukraine, and this interest loan subsidy for Ukraine will be covered by the contributions to the EU budget of the participating 24 EU member states as regards this financing period. And indeed, in the context of the next MFF, a dedicated instrument to cover interest rates can be considered, but that will be part of the discussions concerning the next MFF.
Thank you. And we take a question from a Ukrainian media.
Thank you, Vitali, Freedom TV channel. My question, I think for Commissioner Dombrovskis, is Ukraine said that they need this money already in April at the start of the second quarter. How do you expect to finalize all this process quickly to ensure that it is possible to send the first money in April, balancing conditionality? Thank you.
Well, indeed, we are aware of Ukraine's sizable and urgent financing needs. That's why we are aiming indeed to start disbursing in April. On one hand, we will be engaging with EU co-legislators to ensure a swift legislative process, hopefully to be concluded by early March, which then would allow disbursements in April. And also in parallel, we'll be working with Ukrainian authorities on preparation of a financial strategy for this year so that all the necessary documents and steps can be taken in due time. And I would say also in previous years, we had been working under very tight timelines with Ukrainian authorities and had been able to deliver. And in parallel, we are also working with other international partners which are providing financial support to Ukraine, with the aim for them to frontload their financial contributions to the first quarter of this year so as to cover this funding gap which Ukraine is facing already in the first quarter. And I would say this work is also advancing quite successfully.
Thank you. And Thomas, please.
Hello. Thank you very much, Thomas Mllson, Reuters. I have two questions. So one for Commissioner Dombrovskis. Could you just give us a bit more detail about the state of play of G7 support for Ukraine? Because obviously the Commission has estimated Ukraine needs 135 billion over the next two years. So how confident are you that this additional 45 billion will be covered by G7 partners? And then another question for President von der Leyen about a slightly different topic about Greenland. So we've heard recently that Defense Commissioner Kubilius has said that Article 42.7 would apply, this mutual assistance clause. Greenland obviously is not part of the EU, but there are tens of thousands of European citizens, EU citizens, living in Greenland. So in your view, would member states have an obligation to intervene to support Greenland, including providing military support to Greenland, if the United States were to make military moves on Greenland? Thank you very much.
Let's do the following. We're focusing on the topic of the press conference, and if we have time, we come back to your question at the very end. But we start.
