Background
The Ukraine Support Loan is a €90 billion limited recourse loan designed to help meet Ukraine’s financing needs for 2026 and 2027. The loan will be implemented under enhanced cooperation, in line with the Council Decision authorising its establishment.
The total envelope is indicatively divided into €30 billion for budgetary assistance and €60 billion for defence procurement support. This reflects a balanced approach addressing both Ukraine’s immediate macroeconomic needs and its urgent security requirements.
On 1 April 2026, the Commission adopted two sets of measures advancing the implementation of the €90 billion Ukraine Support Loan package.
- a decision validating the use of necessary procurement derogations for the first defence product schedule under the Loan, which will focus on drones;
- a proposal for the Council to approve the overall amount of EU’s support to Ukraine for 2026 based on the Ukrainian Financing Strategy for this year. This proposal also defines the split between defence procurements and budget support.
Disbursements to Ukraine
The Commission disbursed the first €3.2 billion instalment to Ukraine under the €90 billion Ukraine Support Loan on 25 June 2026.
On 30 June 2026, the Commission then disbursed €3.9 billion as the first payment under the first tranche of around €6 billion dedicated to drone procurement, a key capability enabling Ukraine to withstand Russia's war of aggression.
Use of derogations for drones
The Ukraine Support Loan Regulation provides for a derogation under Article 13(5) only as an exceptional and strictly limited measure. Its application is confined to situations of urgent operational needs, where neither the Ukrainian defence industry nor the European Defence Technological and Industrial Base are able to deliver the required defence products in the necessary quantities and within the required timelines.
As a country at war, Ukraine’s capacity to defend its territory depends on the rapid availability of critical products in the required quantities and within very short timeframes.
In its first product schedule Ukraine requested the application of the derogation to procure drones containing more than 35% of their value (cost/components) originating from outside the Union, the EEA-EFTA States, and Ukraine.
After consultations with the Ukraine Defence Industrial Capacities Expert Group and the Programme Committee, the Commission concluded that the conditions for approving the schedule and granting the derogation request were met.
This will support preparations for the first urgent defence procurements under the instrument and will be followed by additional product schedules on other defence products, including missiles and ammunition, in the coming months.
Next steps
On 23 April 2026 the Council adopted the final key piece of legislation underpinning a €90 billion EU loan to Ukraine, agreed by the European Council in December 2025. The move will allow the Commission to begin disbursements as soon as possible in the second quarter of 2026.
Funding decisions will continue to be taken annually, based on Ukraine’s evolving needs and on Commission proposals. All expenditure will remain subject to agreed conditions and monitoring.
Related documents
Commission presents a financial support package for Ukraine for 2026–2027
Regulation (EU) 2026/468 amending Regulation (EU) 2024/792 establishing the Ukraine Facility