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Europe Becomes Mainstay of Ukraine Aid as U.S. Support Collapses, IfW Finds

With U.S. grants receding, EU financing now anchors Ukraine support through centralized loans, including a newly approved €90 billion package for 2026–27.

Overview

  • Europe lifted its 2025 support sharply, with military aid about 67% above the 2022–2024 average and financial/humanitarian aid up roughly 59%, according to the Kiel Institute’s tracker.
  • Despite Europe’s increases, total international aid fell short of earlier levels, with military commitments about 13% below and non-military support about 5% below the recent three-year average.
  • EU institutions became the primary channel for non-military assistance in 2025, providing nearly 90% of such support worth about €35.1 billion.
  • The European Parliament approved a €90 billion loan facility for 2026–2027, extending centralized EU financing to cover Ukraine’s near-term budget and defense needs.
  • Military assistance is concentrated in Western and Northern Europe, led by Germany at roughly €9 billion in 2025, while South and Eastern Europe supplied about 5% of military aid; U.S. grants fell around 99% as NATO partners instead bought about €3.7 billion in U.S. weapons via the PURL scheme, fueling political pushback in Germany including criticism from Sahra Wagenknecht.