EU to Deliver First €90B Loan Tranche to Ukraine by Early June, With 2027 Funding Gap Looming

Europe expects to deliver the first part of a €90 billion ($106 billion) loan to Ukraine by late May or early June 2026, according to European Commissioner for Economy Valdis Dombrovskis. Speaking to journalists in Brussels on Tuesday, April 21, he said there are no technical delays in preparing the loan and that the EU plans to move forward once the necessary documentation is finalized, European Pravda reports.

This funding will cover two-thirds of Ukraine’s external financing needs for 2026 and 2027, though both Kyiv and Brussels are concerned about the remaining third for next year. Ukraine’s Finance Minister Serhii Marchenko noted that while the 2026 gap is fully covered, uncertainty around 2027 needs remains. 

He explained that officials are currently drafting the state budget for next year, including spending on military and civilian sectors.

“Europe has done a lot to cover two-thirds of the needs, and it is now up to other large countries to show their willingness to support Ukraine, as the 2027 deficit still exists,” Ukraine’s Finance Minister said at a panel during Ukraine Innovation Days.

European officials are also flagging long-term fiscal challenges. Dombrovskis shifted focus to the sustainability of international support as 2027 budget planning begins.

“I would say that right now [in 2026] we are largely secured [with funds for financing Ukraine]. This year, the much more acute issue is the financing deficit for 2027,” he said, as quoted by European Pravda. He noted that the EU will provide €45 billion ($53 billion) annually in 2026 and 2027, with the remaining funds expected from the G7, the IMF, and bilateral support from EU member states.

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To unlock the funds, Kyiv and Brussels are negotiating a Memorandum of Understanding and a list of reforms that Ukraine must implement. According to European Pravda, Dombrovskis clarified that Ukraine currently has sufficient resources to bridge the gap until EU funds arrive in June, thanks to support from other international partners.

The urgency of finalizing the package was echoed by Ukrainian Foreign Minister Andrii Sybiha at a meeting of the EU Foreign Affairs Council on Tuesday, April 21. Sybiha called on EU member states to unblock the €90 billion ($106 billion) support package immediately, alongside the 20th round of sanctions against Russia.

“The €90 billion is an absolute priority. This step has already been agreed upon; it must be implemented because every day of delay causes harm,” Sybiha is quoted in a ministry’s press release. He added that all obstacles, including “artificial” ones, have been removed, and he expects the EU to use available tools to finalize the decision within days.

EU foreign chief Kaja Kallas said she expected positive decisions on Wednesday, April 22, to unblock the loan, as hopes grow that Hungary will drop its veto.