EU Plans to Disburse First Part of €90B of Loan With €6B on Ukrainian-Made Drones

The European Union is set to disburse the first €45 billion ($52.9 billion) installment of its €90 billion ($106 billion) loan to Ukraine within the current quarter, European Commission President Ursula von der Leyen announced during a speech at the European Parliament.

The 2026 funding is split between macrofinancial aid and military support, with one-third allocated to cover Ukraine’s budgetary needs and two-thirds dedicated to defense. The first military package, worth approximately €6 billion ($7.05 billion), will be used to procure drones “from Ukraine, for Ukraine.”

“Our message is clear: we will continue our support to the brave Ukrainian people and their armed forces,” von der Leyen stated, noting that the EU is “doubling down” on its support as Russia intensifies its aggression. 

According to Bloomberg sources, the other part, €8.4 billion ($9.88 billion) financial aid, may become conditional – Brussels may require Kyiv to amend its preferential tax regime for small businesses. Currently, many sole proprietors (FOPs) and small companies benefit from a flat 5% revenue tax. The EU proposal suggests introducing a 20% value-added tax (VAT) for businesses that exceed a specific income threshold. 

Kyiv Post’s government source said the government had already managed a “politically painful delay” on introducing VAT for FOPs. Lawmakers recently stalled this reform, and Kyiv is currently discussing alternatives with the IMF.

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This reform could generate an additional Hr.40 billion ($888.8 million) for the state budget annually. However, the move remains a politically sensitive issue in Ukraine. These budget revenues are necessary as Finance Minister Serhiy Marchenko reported that Ukraine needs $52 billion in foreign funding this year to cover defense and social costs.