Ukraine receives first tranche of 90 billion euro loan from EU
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Ukraine has received 3.2 billion euros from the European Union (EU) — the first tranche of a 90 billion euro loan, Ukrainian Prime Minister Yulia Svyrydenko said on June 25.
The 90 billion euro Ukraine Support Loan is essential both to directly support Ukraine's war effort and to finance the wider government budget, and it is expected to cover two-thirds of Ukraine's total needs for 2026 and 2027. A final agreement on the loan was reached in April.
"The funds have already been transferred to the state budget and will be used to strengthen Ukraine's defense capabilities and social resilience," Svyrydenko wrote on Telegram.
Ukraine's Finance Ministry said that the funds would be used "to finance priority state budget expenditures, support macroeconomic stability, and ensure the uninterrupted functioning of the state during the full-scale war."
The disbursement of the tranche was previously announced the same day by European Commission President Ursula von der Leyen at the Ukraine Recovery Conference in Gdansk, Poland.
"The prosperous Ukraine of tomorrow requires massive investment today," she said. "Since the beginning of Russia's full-scale invasion, the European Union and its member states have provided more than 200 billion euros in economic, financial and military support. And with the Ukraine Support Loan, we will provide a further 90 billion euros over the next two years."
She said that the EU would also "start paying the first money of the 6 billion euros for drone production in the coming days."
For each tranche of the 90 billion euro loan, which will be disbursed gradually through 2026 and 2027, the EU and Ukraine have agreed on conditions that Kyiv has to fulfill in order to receive the cash, some of which will not be popular.
The parliament has also already shown signs of struggling to keep up with the reform agenda. On May 22, EU leaders could only approve partial payments of three separate rounds of financial assistance, because the parliament had failed to pass all the necessary reforms.
