WARSAW — The European Union has disbursed the first €3.2 billion tranche of a €90 billion loan package to Ukraine, providing fresh budgetary support amid the country's ongoing recovery efforts from Russia's invasion.
European Commission President Ursula von der Leyen announced the payment on June 25 at the Ukraine Recovery Conference in Warsaw, describing it as the initial instalment under the new macro-financial assistance programme linked to the broader Ukraine Support Loan.
The disbursement comes as part of a two-year €90 billion commitment agreed by EU leaders in late 2025 to help cover Ukraine's pressing budgetary and defence needs in 2026 and 2027. Of that total, €45 billion is earmarked for 2026.
Ukrainian officials welcomed the funds. The payment follows the signing of a memorandum of understanding between the EU and Ukraine in May, which set conditions for reform implementation.
The European Commission said the tranche would support Ukraine's macro-financial stability. Additional disbursements are planned throughout the year, subject to Kyiv meeting agreed reform benchmarks.
The loan forms part of wider international efforts to back Ukraine as it battles Russian forces and works toward post-war reconstruction. EU officials have tied further payments to progress on governance, anti-corruption measures and alignment with European standards.
Von der Leyen also signalled that the EU would soon begin disbursing around €6 billion earmarked for drone production and related defence capabilities, underscoring the package's dual focus on economic resilience and military support.
The overall financing draws on EU budget mechanisms and involves borrowing backed by member states, with some countries opting out of enhanced cooperation elements. Hungary's recent political changes helped clear the way for the initial payout, according to reports.
Ukraine faces substantial financing gaps. Without sustained external support, officials have warned of risks to public services and defence capabilities. The EU package complements assistance from other partners, including the United States and international financial institutions.
As of late June, Ukrainian Prime Minister Denys Shmyhal confirmed receipt of the funds during conference proceedings, calling them vital for stabilising the economy.
Further tranches under the 2026 allocation are expected in coming months, with the EU monitoring compliance with the programme's conditions. The initiative reflects sustained European commitment to Ukraine's sovereignty and long-term reconstruction.
