Commission disburses the first €3.2 billion instalment to Ukraine under the €90 billion Ukraine Support Loan

This article is brought to you in association with the European Commission.

Today at the Ukraine Recovery Conference, President Ursula von der Leyen announced the disbursement of €3.2 billion to Ukraine as the first instalment of the new macro-financial assistance (MFA). The MFA is a segment of the Ukraine Support Loan, under which €90 billion are expected to be made available to Ukraine in 2026 and 2027, covering both budget support and defence-related needs. As a country at war, Ukraine’s capacity to defend its territory depends on the rapid availability of critical products in the required quantities and within very short timeframes. The first instalment of the €6 billion defence package to support drone procurement will be disbursed in the coming days.

President Ursula von der Leyen said: “The prosperous Ukraine of tomorrow requires massive investment today. Since the beginning of Russia’s full-scale invasion, the European Union and its Member States have provided more than €200 billion in economic, financial and military support. And with the Ukraine Support Loan, we will provide a further €90 billion over the next two years. Today, we are transferring the first tranche under this loan, €3.2 billion in macro-financial assistance. And we will start paying the first money of the €6 billion for drone production in the coming days. This is solidarity in action.”

The MFA package

Today’s disbursement constitutes the first of three payments foreseen this year under MFA, totalling €8.35 billion in 2026. The MFA is underpinned by a dedicated Memorandum of Understanding signed by the EU and Ukraine in May 2026, which sets out the preconditions, reforms and policy measures attached to the MFA operation. Payments are released in instalments, subject to Ukraine’s satisfactory fulfilment of the relevant reforms and conditions. These are designed to help Ukraine mobilise domestic revenues, improve the sustainability and quality of public expenditure, and strengthen public financial management systems.

For the first instalment, Ukraine fulfilled seven policy conditions. These included measures to strengthen domestic revenue mobilisation, notably the extension of the military levy, the submission of draft legislation to the Ukrainian Parliament on the taxation of income earned through digital platforms and on the removal of VAT exemptions for low-value imported parcels. Ukraine also advanced reforms to improve public investment management, align customs legislation more closely with the EU acquis, strengthen customs governance, and reinforce the medium-term public financial management reform agenda.

The MFA provides Ukraine with predictable and flexible financial support to address its urgent financing needs. Russia’s ongoing war of aggression continues to impose very large costs on Ukraine’s economy and public finances. The EU’s financial support helps Ukraine preserve macro-financial stability, maintain essential state functions, and continue financing priority expenditure, including recovery and reconstruction needs.

Background

In February 2026, the European Parliament and the Council adopted Regulation (EU) 2026/467 establishing the Ukraine Support Loan (USL). The Regulation provides for up to €90 billion in support to Ukraine. The support is structured around two complementary components: assistance to strengthen Ukraine’s defence capabilities and defence industrial capacities, and support to ensure the continued functioning of the state, maintain essential public services and strengthen economic resilience.

Following Ukraine’s submission of its Financing Strategy in March 2026, the Council adopted, on 23 April 2026, an Implementing Decision determining the assistance to be made available to Ukraine in 2026. The Decision provides for up to €45 billion in support for 2026, comprising €16.7 billion in budget support and €28.3 billion in support for Ukraine’s defence industrial capacities. The budget support component is split equally between a top-up to the Ukraine Facility and a new MFA operation, each amounting to up to €8.35 billion.

Provided that the relevant conditions are fulfilled and the applicable preconditions and safeguards continue to be met, a second instalment under the MFA operation of an indicative €3.7 billion is expected in September 2026, and a third instalment of an indicative €1.45 billion is expected before the end of the year.

Further payments are also expected under the other components of the Ukraine Support Loan. Under the defence leg, €28.3 billion will be made available in 2026 to support Ukraine’s defence industrial capacities. The first instalment of the €6 billion defence-related disbursement, to be released the coming days, will support the procurement of drones from Ukraine for Ukraine. Further payments for budget support are expected through a top-up of the Ukraine Facility (Pillar I), subject to the adoption by the Council of the Commission’s proposal to amend the Ukraine Plan to incorporate the new amounts and to the subsequent fulfilment of the relevant policy conditions under the Ukraine Plan. The next (8^th) Ukraine Facility disbursement is expected in September.

Since the start of Russia’s war of aggression against Ukraine, the EU and its Member States have provided €211.3 billion in overall support to Ukraine and Ukrainians, including €3.8 billion from the proceeds of immobilised Russian assets.

For more information

Macro-Financial Assistance (MFA)

Macro-Financial Assistance to Ukraine

Ukraine Facility

Commission takes preparatory steps on financial support for Ukraine and boosting drone production

Regulation (EU) 2026/467 implementing enhanced cooperation on the establishment of the Ukraine Support Loan for 2026 and 2027