The EU has approved the first tranche of a €90 billion loan for Ukraine: what is the amount in question?
20 May 15:52
The European Commission has signed a memorandum of understanding on €8.35 billion in macro-financial assistance to Ukraine as part of a €90 billion loan facility. This was announced by European Commissioner for Economic Affairs Valdis Dombrovskis on Facebook, according to "Komersant Ukrainian".
The official stated that today the European Commissioner announced the signing of a memorandum of understanding with Ukraine regarding macro-financial assistance for Kyiv.
“With today’s signing, we are moving confidently toward the first tranche of the Loan to Support Ukraine. This support will strengthen the resilience of Ukraine’s economy, increase domestic revenues, and bolster the fight against corruption,” Dombrovskis stated.
He emphasized that the memorandum sets out the policy conditions that Ukraine must fulfill before each tranche of macro-financial assistance is disbursed.
According to the terms, these conditions are fiscally oriented and divided into three key areas:
- revenue mobilization
- efficiency of public spending
- public finance management systems.
“The conditions for the first tranche include actions across all three areas. Specifically, this concerns the taxation of income generated through digital platforms, sectoral strategies for public investment, and reforms to Ukraine’s Customs Code,” Dombrovskis wrote.
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According to the European Commissioner, “this support is tied to clear reform conditions and once again demonstrates the EU’s unwavering commitment to supporting Ukraine for as long as necessary.”
The next step is for the Verkhovna Rada of Ukraine to ratify the document.
“Once these procedures are completed and the memorandum enters into force, the European Commission will proceed with the remaining procedures to disburse the first tranche of macro-financial assistance in the amount of €3.2 billion in June 2026—provided Ukraine meets all necessary requirements,” the official stated.
The European Commission also noted that the EU is covering two-thirds of Ukraine’s urgent military and financial needs through a support loan for 2026–2027. The remaining funds are to be provided by international partners.
The Memorandum of Understanding on macro-financial assistance is one of the documents serving as the basis for the disbursement of a €90 billion loan to Ukraine for 2026–2027.
As previously reported by Politico, the EU will first purchase €5.9 billion worth of drones in June to strengthen Ukraine’s defense. The European Commission will then provide Ukraine with €3.2 billion, which will be used to cover budget expenditures, including the payment of military salaries.
“The Commission aims to disburse the first tranche as soon as possible, in the second quarter of 2026. It will cover the purchase of drones from Ukraine for Ukraine,” one of the sources told the publication.
As a reminder, on April 23, the European Union officially approved a €90 billion loan for Ukraine—it is planned to be repaid using Russian reparations.
On May 11, the European Union reported that it would not be able to transfer the first tranche of financial aid to Ukraine under the €90 billion loan by May 24—the funds may not arrive until early June 2026 at the earliest.
European Commissioner for Enlargement Marta Kos announced the first payments as early as this week. European Commission President Ursula von der Leyen had previously mentioned €6 billion for the current quarter.
On April 23, Ukrainian President Volodymyr Zelenskyy stated that the first tranche from this support package could arrive as early as May or June.
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