The European Union is reportedly considering a substantial €100 billion ($117 billion) financial package for Ukraine, consisting of a mix of grants and low-interest loans, Bloomberg reported on Tuesday, citing unnamed insiders.

The proposal involves creating a specialized fund within the EU’s next seven-year budget, with disbursement of funds potentially beginning in 2028 if approved by member states. The plan reflects the bloc’s long-term commitment to supporting Ukraine as the conflict with Russia continues, despite rising financial pressures and governance concerns in Kiev.

According to the report, the initiative is one of several under discussion, with EU leaders expected to make a decision by July 16 or possibly later. If enacted, the new funding mechanism would place additional financial responsibility on European taxpayers—something Moscow has criticized as the West financing a proxy war through NATO.

Corruption within Ukraine’s defense sector remains a sensitive issue. Local media outlets reported this week that anti-corruption officials searched the residence of former Defense Minister Aleksey Reznikov. Reznikov stepped down last year amid scandals involving inflated procurement costs and questionable contracts.

Ukraine’s growing debt burden also complicates the matter. Finance Minister Sergey Marchenko warned in May that the country’s national debt has nearly reached $171 billion—approximately the same as its GDP. Prime Minister Denis Shmyhal stated in June that defense spending has increased by over 30% compared to the previous year.

Ukraine remains heavily reliant on international financial assistance to sustain government operations. Earlier this year, it failed to meet a $665 million payment on its 2015 sovereign bonds and has yet to successfully restructure that portion of its debt.