EU transfers first €3.2 billion of massive loan package to Ukraine, with drone funding to follow
The European Union has transferred the first €3.2 billion of a €90 billion loan to Ukraine, Commission President Ursula von der Leyen announced Thursday at a reconstruction conference in Gdańsk, Poland. A further €6 billion for drone purchases will follow within days.
Initial disbursement
The European Union transferred the first tranche of its €90 billion loan to Ukraine on Thursday, June 25, 2026. The payment of €3.2 billion is earmarked for budget support, helping the Ukrainian government finance its operations. The announcement came from European Commission President Ursula von der Leyen during her opening address at the Ukraine Recovery Conference in Gdańsk, Poland.
These investments show that Europe's support for Ukraine is far from stopping.
Loan structure
The full loan package, approved by EU member states in December 2025, covers the period 2026–2027. It is split into €60 billion for military support and €30 billion for budgetary aid. Defense industries from the EU, Ukraine, and Norway receive priority in procurement, though derogations can be made for third countries.
- Military support
- 60 € billion
- Budgetary aid
- 30 € billion
Von der Leyen confirmed that a second payment of €6 billion, dedicated to drone production, will be disbursed "in the coming days." This tranche reflects the union's focus on strengthening Ukraine's defense capabilities.
Reconstruction fund
Alongside the loan transfer, the Commission launched a European Flag Fund for the Reconstruction of Ukraine. The fund, backed by the EU, Poland, France, Germany, and Italy, aims to mobilize up to €1 billion for strategic investments. Von der Leyen said it is "ready to start" and could channel around €500 million this year.
It is proof that Europe's support for Ukraine is sustainable. At the same time, we appeal to all our partners to maintain support, because a strong and independent Ukraine is in our common interest.
Political and practical milestones
The loan was made possible after Hungary withdrew its veto, unblocking the consensus needed for the Union to borrow on capital markets. The first tranche arrives as Ukraine contends with ongoing fiscal pressure and heavy front-line costs, underscoring the alliance's commitment to Kyiv's near-term stability.
