Ukraine received EUR 3.2 billion from the EU – first tranche under the Ukraine Support Loan

The State Budget of Ukraine has received EUR 3.2 billion from the European Union. This is the first tranche of budget support under the new financial instrument, the Ukraine Support Loan.

The funds will help finance priority state budget expenditures, support macrofinancial stability, and ensure the uninterrupted functioning of the state amid the full-scale war.

The Ukraine Support Loan is part of the EU’s broader two-year support framework for Ukraine for 2026–2027. The total volume of the instrument amounts to up to EUR 90 billion. This decision enables Ukraine not only to cover urgent budgetary needs, but also to ensure greater predictability of financing over the medium term.

“The EUR 3.2 billion received is the first practical result of the launch of the new support instrument for Ukraine. For us, this is not just another tranche. It is a resource that helps the state fulfill its obligations to citizens, maintain financial resilience, and direct more domestic resources to defense. I am grateful to the European Union for its swift decisions, consistency, and readiness to support Ukraine for as long as it takes,” said Minister of Finance of Ukraine Sergii Marchenko.

In 2026, up to EUR 45 billion is expected to be available to Ukraine under the Ukraine Support Loan. Part of these funds is intended for budget support, while another part is aimed at strengthening Ukraine’s defense-industrial potential and procuring necessary defense products.

The budget component of the Ukraine Support Loan is linked to Ukraine’s implementation of agreed conditions, including in the areas of public finance management, revenue mobilization, expenditure efficiency, the rule of law, and anti-corruption. Ukraine has fulfilled the conditions required to receive the first tranche of EUR 3.2 billion and continues to work on further commitments under its cooperation with the EU.

The European Union remains a key partner of Ukraine in ensuring budget stability. Since the beginning of the full-scale invasion, the EU has provided Ukraine with more than EUR 70 billion in budget support. These funds help finance the state’s priority needs, support economic resilience, and strengthen Ukraine’s ability to withstand Russian aggression.

Background

The Ukraine Support Loan provides for up to EUR 90 billion in financing for Ukraine in 2026–2027. Indicatively, EUR 30 billion is allocated for economic and budget support, while EUR 60 billion is intended to support defense needs, including investments in Ukraine’s defense-industrial potential.

The instrument is financed through EU borrowing on capital markets and backed by the EU budget. The loan is expected to be repaid through future reparations that Russia must pay to Ukraine for the damage caused.