The European Commission has paid €4.36 billion to Ukraine under the EU’s €90 billion Ukraine Support Loan, including €3.7 billion in budget support and €658 million for defence procurement.
The €3.7 billion forms the second instalment of a 2026 package of macro-financial assistance — EU loans to help cover government funding needs — totalling €8.35 billion, the Commission said in its statement on Thursday.
Ukraine met 12 policy conditions tied to the second instalment, including passing legislation to tax income earned through digital platforms, removing a VAT exemption for low-value commercial imports in parcels, and steps to improve tax compliance.
Other measures cited by the Commission included reforms to budget planning and public investment management, modernisation of customs systems, and strengthening external audit.
The €658 million defence payment is the seventh disbursement under the loan’s “defence leg.”
Drones, missiles and air-defence ammunition
The defence funding will support procurement of drones, missiles, radars, electronic warfare systems and ammunition for Ukraine’s air defence, with most of the money intended to be spent on equipment from Ukrainian companies, the Commission said.
Ukraine is “about to start its fifth wartime winter”, and the EU payment would help the country provide essential public services and address defence needs, Commission president Ursula von der Leyen stated.
For the remainder of 2026, €25.2 billion is still available in EU financial support to Ukraine, including around €20.9 billion under the Ukraine Support Loan and almost €4.4 billion in budget support under the Ukraine Facility.
The EU and its member states have provided €235.9 billion in overall support to Ukraine since the start of Russia’s war against the country, including €3.8 billion from the proceeds of immobilised Russian assets.
