Kyiv seeks to boost soldier wages with European billions
Ukrainian soldiers downing Russian drones in Druzhkivka, Donetsk Oblast, Feb. 25, 2026 (Photo: Iryna Rybakova/Press Service of the 93rd Kholodnyi Yar Separate Mechanized Brigade/Handout via REUTERS)
Ukraine is negotiating with European partners to redirect a part of a massive €90 billion ($106 billion) EU loan specifically to fund military salaries and increase basic pay for soldiers, MP Yehor Cherniev told Radio NV on Feb. 26.
Cherniev, deputy head of the Verkhovna Rada Committee on National Security, Defense, and Intelligence, highlighted that increasing financial compensation is a critical "motivating factor" for current and future soldiers.
"We are working with European partners to redirect part of the money toward the financial support of our soldiers," he said.
"Defense Ministry has ideas for new contracts, but they require funding. These ideas are aimed at increasing the base rate for those already in the army or joining it."
The EU Council moved forward on Feb. 24 with two critical documents required to finalize the €90 billion (($106B) loan package for 2026–2027. While the loan was politically approved in December 2025, it faced recent hurdles. European Parliament President Roberta Metsola officially signed the loan agreement on Feb. 24, designating the funds to shore up public services and maintain Ukraine’s "strong defense."
European Economy Commissioner Valdis Dombrovskis noted that despite the political theater, technical work has begun to release the first tranche in April 2026.
The funding remains a battlefield of diplomacy as Hungarian Foreign Minister Péter Szijjártó vowed on Feb. 20 to block the final necessary budget document until the transit of Russian oil via the Druzhba pipeline — disrupted since late January following a Russian drone strike — is restored. Moreover, Budapest has accused Kyiv of "blackmail" — a claim Ukraine denies.
Repayment through reparations
The €90 billion interest-free loan is uniquely structured. European Commission President Ursula von der Leyen clarified that Ukraine is only expected to repay the debt after Russia pays war reparations. Until that day comes, Russian state assets in Europe will remain frozen as collateral for the continent’s security.
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