The European Commission has signed an agreement with Ukraine that sets the conditions for a planned €3.2 billion EU loan instalment expected in the second quarter of 2026.
The Memorandum of Understanding was signed on behalf of the Commission by Valdis Dombrovskis, the Commissioner for Economy and Productivity; Implementation and Simplification, the Commission announced on Wednesday.
It follows formal approval by participating EU member states in the macro-financial assistance committee on 18 May.
Macro-financial assistance is an EU tool that provides loans to partner countries, linked to policy conditions.
The document sets out the expected size of loan instalments and the requirements Ukraine must meet before payments are made. Those requirements include continued respect for democratic mechanisms, the rule of law — including efforts to fight corruption — and respect for human rights.
Conditions tied to tax and public spending reforms
The Commission said the agreement sets policy conditions Ukraine must fulfil before each instalment can be disbursed, with a focus on fiscal measures.
It added d the conditions are organised around three areas: revenue mobilisation, improving the efficiency of public spending, and strengthening public financial management systems.
For the first disbursement, the Commission noted Ukraine must take steps across all three areas, including moves towards taxing income earned through digital platforms, developing sector-based strategies for public investment, and updating the Ukrainian Customs Code.
The agreement must now be signed and ratified by Ukraine before it can enter into force.
Once that happens, the Commission said it would take the remaining steps needed to enable the first €3.2 billion instalment in the second quarter of 2026, provided Ukraine meets the relevant conditions.
“With today's signing, we are on track and advancing towards the first disbursement of the Ukraine Support Loan, ” Dombrovskis said.
