A further €3.9 billion has been transferred from the European Union to a special fund within Ukraine’s state budget under the Ukraine Support Loan programme.
Ukrainian Prime Minister Yuliya Svyrydenko announced the transfer in a post on Telegram.
The funds will be directed towards financing priority defence needs, including the production of Ukrainian drones, strengthening the capabilities of the defence industry, and ensuring urgent supplies for the front line.
This is the first tranche specifically allocated for defence support under the new Ukraine Support Loan financial instrument.
According to the European Commission, further disbursements will be made in the coming days until the first tranche designated for drones has been fully covered. The total amount allocated for this purpose is approximately €6 billion.
On 25 June, €3.2 billion was transferred to the state budget as budgetary support under the same loan programme. In total, Ukraine has already received €7 billion through this instrument.
- Prior to this, the government approved the procedure for using European Union funds raised under a special loan to support Ukraine’s defence and industrial capabilities in 2026–2027.
- The loan amounts to €90 billion, of which €45 billion will be provided this year, with the remainder to follow next year. The funds will primarily be used to finance weapons needed to repel Russian aggression, covering both procurement and domestic production. The funding is subject to a number of conditions, including adherence to the rule of law, anti-corruption commitments, and transparency in the use of funds. Repayment is politically linked to future reparations from the Russian Federation.
- Although this is a loan, Ukraine will not be required to repay the funds until it receives reparations from Russia.