Ukraine Received 3.9 Billion Euros from the EU: Where Will the Defense Tranche Be Allocated?
30 June 13:50
A loan of 3.9 billion euros from the European Union has been transferred to a special fund of Ukraine’s state budget. The funds are to be used to finance the country’s priority defense needs. The European Commission and Prime Minister Yulia Svyrydenko announced the start of funding, according to "Komersant Ukrainian"
This is the first payment specifically for the defense component of the new European financial instrument, the Ukraine Support Loan.
“This is the first tranche specifically for defense support under the new Ukraine Support Loan financial instrument,” she wrote.
Where will the €3.9 billion be allocated?
The funds received from the European Union have been credited to a special fund within the state budget.
They are earmarked for defense purposes and will not be used for regular social or administrative expenditures.
According to the government, the €3.9 billion is planned to be allocated to:
- the production of drones by Ukrainian companies;
- expanding the capacity of the defense-industrial complex;
- the procurement of necessary military equipment;
- funding urgent needs on the front lines;
- scaling up Ukrainian defense technologies;
- fulfilling contracts with weapons manufacturers.
Particular emphasis was placed on drones, which have become one of the main types of equipment on the modern battlefield.
European Commission President Ursula von der Leyen emphasized that Ukraine’s technological ingenuity has been one of the key factors in its successful resistance to full-scale Russian aggression.
“Ukraine’s ingenuity is at the heart of its success in confronting Russia’s full-scale invasion. We want to support this ingenuity. Today, we are allocating a first tranche of 3.9 billion euros for cutting-edge drone technology to strengthen Ukraine’s defense. And there will be more to come,” said Ursula von der Leyen.
She emphasized that funding Ukrainian defense technologies is an investment not only in Ukraine’s defense but also in Europe’s security.
According to her, the European Union will stand by Ukraine for as long as it takes to achieve a just and lasting peace.
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Ukraine Receives First Defense Tranche
Yulia Svyrydenko described the €3.9 billion as the first tranche of defense support under the Ukraine Support Loan.
Previously, funding from the EU mainly came in the form of macro-financial assistance to cover the budget deficit and ensure the stable functioning of the state.
The new mechanism includes a separate, substantial component that Ukraine will be able to use for defense production and procurement.
Information on the loan’s structure was released by the Council of the European Union.
What Is the Ukraine Support Loan
The Ukraine Support Loan is a new European Union lending mechanism with a total volume of €90 billion.
The financing is scheduled for 2026 and 2027 and is intended to help Ukraine cover:
- urgent budgetary needs;
- defense expenditures;
- investments in the defense industry;
- purchases of military equipment;
- needs related to the continuation of Russian aggression.
The European Council approved the decision to grant the loan in December 2025. In April 2026, the Council of the EU finalized the legal framework for the mechanism.
A detailed description of the program is available on the official website of the Council of the EU.
How the €90 billion will be allocated
The total Ukraine Support Loan package is tentatively divided into two main parts:
- €60 billion — for defense needs and the development of the defense-industrial complex;
- €30 billion — for macro-financial and budgetary support for Ukraine.
The defense portion is intended to help Ukraine invest in its own weapons production, as well as procure equipment needed by the Armed Forces.
The Council of the EU notes that funding will be provided subject to a framework of conditions and oversight, particularly regarding the rule of law and the fight against corruption.
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How much funding has Ukraine already received?
On June 25, the European Commission announced the first tranche of macro-financial assistance in the amount of €3.2 billion.
This tranche is also part of the Ukraine Support Loan but falls under the budgetary, rather than the defense, component of the program.
An official announcement regarding this payment was published on the European Commission’s website.
Following the receipt of a new defense tranche worth €3.8 billion, the total amount of funding Ukraine has received under this instrument reached €7 billion:
- €3.2 billion — macro-financial assistance;
- €3.8 billion — funding for defense needs.
How much will Ukraine receive in 2026?
The European Union plans to provide Ukraine with up to €45 billion in 2026 under the Ukraine Support Loan program.
According to the European Commission and the Council of the EU, of this amount:
- €28.3 billion is earmarked for defense;
- the remainder is to be directed toward budgetary and macro-financial needs.
In 2027, Ukraine may also receive approximately €45 billion if it meets the program’s conditions.
Thus, the total funding over two years will amount to €90 billion.
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