The European Commission is ready to release more than €9 billion from the Ukraine Support Loan to help Kyiv with budgetary and defence support.
An instalment of €3.2 billion is part of the macro-financial assistance (MFA) allocated to Ukraine. Under the MFA, the Commission plans to provide Ukraine with €8.35 billion over 2026. The assistance is intended to support Ukraine financially during its war effort against Russia.
The funds disbursed are linked to the fulfilment of a set of prerequisites outlined in a memorandum of understanding signed by the EU and Ukraine last May. For the first instalment, Kyiv had to meet seven policy conditions. Among other things, Ukraine extended the military levy, submitted draft legislation on taxation of digital platforms, and proposed removing VAT exemptions for certain imported parcels. Other requirements align Ukraine more closely with the EU, especially in public investment management and customs.
Commenting on this loan, Valdis Dombrovskis, Commissioner for Economy said that “Ukraine is strengthening its economic resilience and showing its determination to advance on its European path by delivering on key conditions and reforms, notably on domestic revenue mobilisation,” praising the country that “continues to show extraordinary resilience in the face of Russia’s brutal aggression, defending not only its own sovereignty, but the very principles of freedom, democracy and security in Europe.”
Another €6 billion is ready to be given. This additional loan is focused on defence spending, particularly drone production. Drones have been one of Ukraine’s most notable technological achievements during the war, and Ukraine has quickly become a leader in producing them.
The EU has allocated a total of €90 billion in its Ukraine Support Loan for 2026 and 2027. It plans to release half during 2026. As the European Commission President Ursula von der Leyen said: “The prosperous Ukraine of tomorrow requires massive investment today.”
