Today, the European Commission disbursed €4.36 billion to Ukraine under the Ukraine Support Loan. This payment includes €3.7 billion for the second instalment of macro-financial assistance (MFA) agreed for 2026 and €658 million under the defence leg of the Loan.
The disbursements will contribute to Ukraine meeting its financing needs and ensure the continued functioning of the state and of its essential public services. It will also help to address Ukraine’s urgent defence needs through the procurement of key military equipment.
Ursula von der Leyen, President of the Commission: “As Russia continues its relentless attacks, Ukraine is about to start its fifth wartime winter. And as efforts to achieve a just and lasting peace for Ukraine continue, so too does the EU’s unwavering support. With today’s €4.36 billion disbursement, we are helping Ukraine provide essential public services and address its urgent defence needs.“
Supporting Ukraine’s budget
Today’s disbursement for budget support is the second of three payments scheduled for 2026 to address Ukraine’s financing needs in the form of MFA, which totals €8.35 billion. The MFA is underpinned by a Memorandum of Understanding, which sets out the preconditions, reforms and policy measures linked to the MFA operation. These are designed to help Ukraine mobilise domestic revenues, improve the sustainability and quality of public expenditure, and strengthen its public financial management systems. Payments are released in instalments, subject to Ukraine’s satisfactory fulfilment of the relevant reforms and conditions.
To enable the release of this second instalment, Ukraine fulfilled all 12 policy conditions. These included measures to mobilise domestic revenue by adopting legislation on the taxation of income earned through digital platforms, removing the VAT exemption for low-value commercial imports in parcels, and improving tax compliance. Ukraine also advanced reforms to improve budget planning and public investment management, modernise customs systems and strengthen external audit. This is a testament to the country’s efforts in progressing on its reform agenda despite the intensified war situation.
Strengthening Ukraine’s defence
The Commission is also disbursing a further €658 million under the defence leg of the Ukraine Support Loan. This is the seventh payment for defence under the instrument.
The funding will support the procurement of drones, missiles, radars, electronic warfare systems and ammunition for air defence of Ukraine. The majority of this funding will be used to procure equipment from Ukrainian companies, as Ukraine’s defence industry plays a key role in developing and supplying the capabilities required to meet the demands of modern warfare.
€25.2 billion in EU support still available to Ukraine in 2026
For the rest of 2026, €25.2 billion is available in EU financial support to Ukraine. That includes around €20.9 billion for disbursement under the Ukraine Support Loan, consisting of €11.9 billion to support Ukraine’s defence industrial capacity and €9.0 billion in budget support. In addition, almost €4.4 billion in budget support is still available under the Ukraine Facility for this year (excluding the top-up from the Ukraine Support Loan). The release of these funds is subject to the fulfilment of the required conditions outlined in the relevant legal bases.
Since the start of Russia’s war of aggression against Ukraine, the EU and its Member States have provided €235.9 billion in overall support to Ukraine, including €3.8 billion from the proceeds of immobilised Russian assets.
Background
In February 2026, the European Parliament and the Council adopted Regulation (EU) 2026/467, establishing the Ukraine Support Loan. The Regulation provides for up to €90 billion in support to Ukraine. The support is structured around two complementary components: assistance to strengthen Ukraine’s defence capabilities and defence industrial capacities, and support to address Ukraine’s budgetary needs and financial stability.
Following Ukraine’s submission of its Financing Strategy in March 2026, the Council adopted on 23 April 2026 an Implementing Decision determining the assistance to be made available to Ukraine in 2026. The Decision provides for up to €45 billion in support for 2026, comprising €16.7 billion in budget support and €28.3 billion in support for Ukraine’s defence industrial capacities.
The budget support component is split equally between a top-up to the Ukraine Facility and a new MFA operation, each amounting to up to €8.35 billion. Under the MFA, a first instalment of €3.2 billion has been disbursed on 25 June 2026. Additionally, the first disbursement of Ukraine Support Loan funds under the Ukraine Facility took place on 2 October 2026 and amounted to €800 million, as part of the €2.9 billion released under the Ukraine Plan’s 8th instalment.
Under the defence leg, the Commission has now disbursed €16.4 billion. The defence component focuses on reconstructing and modernising Ukraine’s defence technological and industrial base, while supporting its gradual integration into the European defence technological and industrial base.
For more information
Macro-Financial Assistance (MFA)
Macro-Financial Assistance to Ukraine
Commission takes preparatory steps on financial support for Ukraine and boosting drone production
Quote(s)
As Russia continues its relentless attacks, Ukraine is about to start its fifth wartime winter. And as efforts to achieve a just and lasting peace for Ukraine continue, so too does the EU’s unwavering support. With today’s €4.36 billion disbursement, we are helping Ukraine provide essential public services and address its urgent defence needs.
Ursula von der Leyen, President of the European Commission
Ukraine Support Loan helps Ukraine to defend its own but also Europe’s security. This €4.36 billion are a clear proof of Europe’s commitment to defend Ukraine from illegal war of aggression.
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy
By meeting the conditions agreed with international partners, Ukraine has demonstrated its continued commitment to EU accession and to strengthening its economic resilience. The €4.36 billion disbursed today under the Ukraine Support Loan reflect that progress. This funding provides vital, predictable support to keep Ukraine’s economy running, sustain essential services and strengthen its resilience in the face of Russia’s continued war of aggression.
Valdis Dombrovskis, Commissioner for Economy and Productivity; Implementation and Simplification
This payment under the Ukraine Support Loan tells a powerful story: one of the ingenuity and growing capabilities of Ukraine’s defence industry. By directing funding to Ukrainian companies, we are supporting the development of a highly innovative defence ecosystem from which Europe defence base has much to learn.
Andrius Kubilius, Commissioner for Defence and Space
