EU’s €90 Billion Loan Can’t Be Used for Soldier Salaries – Ukraine Seeks Alternative Funding.

Ukraine’s Challenge in Paying Its Military

According to Novyny.live: The Ukrainian government is urgently searching for ways to fund military salaries, as a €90 billion loan from the European Union is off-limits for this purpose. According to sources, the EU has firmly rejected using the credit for payroll, forcing Kyiv to explore other financial avenues to support its armed forces.

The EU loan is allocated across two specific areas:

• €30 billion designated for state budget support;
• €60 billion earmarked for defense investments.

A European Commission official noted that under current agreements, these contracts are being handed over to partners for financing, indicating that some funds will indirectly support Ukrainian troops through alternative channels.

Adding to the pressure, the International Monetary Fund opposes expanding Ukraine’s state budget deficit by 70–100 billion hryvnias, creating further hurdles for the government as it scrambles for resources. With the EU loan unusable for salaries, Ukraine must devise new solutions to meet its obligations to service members.

This leaves the funding outlook for military pay precarious, requiring the government to take swift action to secure necessary resources.

Urgent Need to Revise Financial Strategy

The situation underscores Ukraine’s pressing need to overhaul its financial strategy in response to constraints from the EU and IMF. As wartime demands for military funding escalate, finding alternative sources of cash is critical to maintaining the country’s defense capabilities and honoring commitments to soldiers. Potential steps include:

• reassessing budget expenditures;
• pursuing new international loans;
• attracting investments from other sources.