European Commission Disburses 4.36 Billion Euros to Ukraine

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The European Commission said Thursday that it has disbursed 4.36 billion euros to Ukraine under the 90 billion euro “loan.” Of that amount, 3.7 billion euros went to budget support and about 660 million euros to Ukraine’s defense needs.

The budget support is the second of three tranches of macro-financial assistance planned for 2026. The total value of that support is 8.35 billion euros.

The Commission said the payment was possible because Ukraine met all of the reform conditions. The commitments it fulfilled include adopting rules on taxing income earned through digital platforms, ending the VAT exemption for low-value commercial shipments, and taking steps to improve tax collection.

Ukraine also carried out reforms in budget planning, public investment management, modernization of the customs system and stronger external oversight.

The 658 million euros will be used to buy drones, missiles, radars, electronic warfare systems and air defense ammunition. Most of the funds are to go to Ukrainian defense companies. It is the seventh defense payment under the 90 billion euro loan.

In total, the European Commission has already transferred 16.4 billion euros to Ukraine under the defense portion of this instrument.

The Commission said another 25.2 billion euros in EU financial support remains available to Ukraine through the end of 2026.

European Commission President Ursula von der Leyen, quoted in the announcement, stressed that EU support allows Ukraine to finance public services and meet urgent defense needs in the face of Russian attacks.

The loan, established in February by a regulation of the European Parliament and the Council of the EU (the member states), provides for up to 90 billion euros to be made available to Ukraine.

Since the start of Russia’s full-scale aggression against Ukraine, the EU and its member states have provided Kyiv with a total of 235.9 billion euros in support, including 3.8 billion euros from proceeds of frozen Russian assets.

From Brussels, Łukasz Osiński (PAP)

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