Ukraine receives EUR 3.9 billion from the EU – first defence tranche under the Ukraine Support Loan

EUR 3.9 billion from the European Union has been transferred to the special fund of the State Budget of Ukraine. This is the first disbursement under the first EUR 5.01 billion defence tranche of the Ukraine Support Loan. 

The funds will be directed to financing priority defence needs, including strengthening the capacity of Ukraine’s defence industry and ensuring urgent supplies for the frontline.

The Ukraine Support Loan is part of the European Union’s broader two-year support framework for Ukraine for 2026–2027. The total volume of the instrument amounts to up to EUR 90 billion. This decision enables Ukraine not only to cover urgent financing needs, but also to ensure greater predictability of funding in the medium term.

In 2026, up to EUR 45 billion is expected to be available to Ukraine under the Ukraine Support Loan. In particular, the defence component for 2026 provides for EUR 28.3 billion.

“Receiving the first defence tranche under the Ukraine Support Loan is an important practical step in implementing the new format of the European Union’s support for Ukraine. These funds will be directed to what is critically important for our resilience today: strengthening Ukrainian drone production, the defence industry, and meeting the needs of the Defence Forces. For Ukraine, it is important that EU support is becoming not only large-scale, but also more predictable. This enables the Government to plan the financing of defence and budgetary needs over the medium term, maintain financial stability, and strengthen Ukraine’s own defence-industrial potential”, stated Minister of Finance of Ukraine Sergii Marchenko.

On 25 June, EUR 3.2 billion from the European Union was already transferred to the State Budget of Ukraine – the first tranche of budgetary support under the Ukraine Support Loan. Thus, the total amount of funds received by Ukraine under this instrument stands at EUR 7 billion.

Additional information

The Ukraine Support Loan provides for up to EUR 90 billion in financing for Ukraine in 2026–2027. EUR 30 billion will be allocated for economic and budgetary support, while EUR 60 billion will be directed to supporting defence needs, including investments in Ukraine’s defence-industrial capacity.

The instrument is financed through EU borrowing on capital markets and backed by the EU budget. It is expected that the loan will be repaid using future reparations that russia must pay to Ukraine for the damage caused.