Ukraine Receives $3.6B as First Tranche of EU's Ukraine Support Loan

Ukraine’s state budget received €3.2 billion ($3.6 billion) from the EU on June 25, the first disbursement under a new financial instrument designed to keep Kyiv’s public finances running through the war, the Finance Ministry wrote.

The payment marks the opening tranche of the Ukraine Support Loan, a two-year EU support framework for 2026-2027 worth up to €90 billion ($102 billion). “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,” the ministry’s press release states, quoting the Minister of Finance of Ukraine Serhiy Marchenko. Of the total loan amount, €30 billion ($33.9 billion) is earmarked for budget support and €60 billion ($67.8 billion) for defense needs for the next two years. The €3.2 billion ($3.6 billion) disbursed on June 25 falls under the loan’s broader budget support component, tied to conditions on public finance management, revenue mobilization, spending efficiency, the rule of law, and anti-corruption efforts.

Kyiv has met the conditions for this first payment and continues work on further commitments, the ministry wrote.

Commitments in return for the Ukraine Support Loan

A bill ratifying the loan agreement was registered in parliament on May 28 under No. 0376, submitted by the president’s office.

The agreement’s memorandum of understanding sets conditions for a separate €8.4 billion ($9.4 billion) macro-financial assistance component, paid in three tranches.

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Across all three, Ukraine commits to upholding democratic institutions, human rights, and anti-corruption measures; preserving the National Bank of Ukraine’s (NBU) independence; and regularly reporting financial data to the European Commission, the memorandum states.

Ukraine’s commitments are set out below.

First tranche (€3.2 billion/$3.6 billion) – already disbursed:

• Submission of bills ending tax exemption on international parcels and taxing income from digital platforms
• Extension of the 5% military levy for three years
• Updated public finance management strategy and a new draft Customs Code
• Appointment of a permanent head of the State Customs Service

Second tranche (€3.7 billion/$4.2 billion):

• Laws on digital-platform taxation, the parcel exemption with an exception for security and defense goods
• A property valuation system
• Corporate tax rules aligned with the EU’s Anti-Tax Avoidance Directive (2016/1164)
• A VAT compliance roadmap, a 2027-2029 budget declaration, and 2026 spending reviews
• Parliament’s nomination of three experts to the Accounting Chamber’s board selection commission

Third tranche (€1.5 billion/$1.6 billion):

• Reform of the preferential tax regime, aimed at anti-abuse rules against artificial business-splitting, limits on returning to the simplified system, differentiated rates for group three taxpayers by activity type, and alignment with EU Directive 2006/112/EC
• Simplified VAT administration and further corporate tax alignment with the EU directive
• A draft 2027 state budget, a new procurement strategy, and a defense procurement concept note
• State Audit Service reform, 10 new audit committees, and adoption of the new Customs Code

The EU has provided more than €70 billion ($79.1 billion) in budget support to Ukraine since the start of Russia’s full-scale invasion, according to the finance ministry. The Ukraine Support Loan is financed through EU borrowing on capital markets and backed by the EU budget, with repayment expected to come from future Russian reparations.