Ukraine has received €3.9 billion ($4.6 billion) from the EU, marking the first defense-related disbursement under the new Ukraine Support Loan program, Ukraine’s Ministry of Finance announced on Tuesday.
The funds were transferred to Ukraine’s special state budget fund and will help expand Ukraine’s defense industry and purchase urgently needed military equipment for the front.
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“This first defense installment under the Ukraine Support Loan is an important practical step in implementing the EU’s new support format for Ukraine,” Finance Minister Serhiy Marchenko said, according to the ministry’s press release.
“These funds will be directed toward what is critically important for our resilience today: strengthening Ukrainian drone production, the defense industry, and meeting the needs of the defense forces,” he added.
EU support program
The payment is part of the EU’s Ukraine Support Loan – a two-year financial framework covering 2026-27 with a total value of up to €90 billion ($103 billion).
Under the initiative, €60 billion ($79 billion) is allocated for defense needs, including investments in Ukraine’s defense-industrial capacity, while the remaining €30 billion ($34 billion) is intended for economic and budgetary support.
Of that amount, up to €45 billion ($51 billion) is expected to be available to Ukraine during 2026, including €28.3 billion ($32.3 billion) earmarked specifically for defense.
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According to the finance ministry, the new mechanism is designed to provide Ukraine with more predictable medium-term financing while helping meet both immediate wartime needs and longer-term budgetary requirements.
Officials said the program will also allow the government to better plan defense spending while maintaining financial stability.
The latest transfer follows another €3.2 billion ($3.6 billion) from the EU received on Thursday, under the budget support component of the same program.
Combined, Ukraine has now received €7 billion ($8 billion) through the Ukraine Support Loan mechanism.
EU’s largest financial package for Ukraine
European officials have described the initiative as one of the bloc’s largest long-term support commitments since the start of Russia’s full-scale invasion in 2022.
The package was formally adopted after Hungary and Slovakia lifted their objections, allowing the EU to approve both the loan mechanism and its 20th sanctions package against Russia.
According to the European Commission, the funding is expected to cover roughly two-thirds of Ukraine’s external financing needs over the next two years, with the remaining support coming from G7 countries, the International Monetary Fund (IMF), and other international partners.
The program is financed through EU borrowing on international capital markets, with Ukrainian officials expected to repay the amount using future Russian reparations for damages caused by Moscow’s full-scale invasion.
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