The European Commission on October 30, 2026, proposed disbursing about €45 billion to Ukraine in 2027 under its Ukraine Support Loan, the second half of the €90 billion loan approved in April.
Defence takes the largest share
About €31.7 billion is earmarked for strengthening Ukraine’s defence industrial capacity. The remaining €13.3 billion in budget support is split equally between the Ukraine Facility and Macro-Financial Assistance, the latter tied to an IMF programme.
Conditions attached
Budget support is linked to rule of law, anti-corruption reforms and economic resilience. Commission President Ursula von der Leyen said the proposal provides “much-needed predictability” and helps “maintain essential public services.”
Next steps
The proposal must be approved and adopted by the Council of the EU, after which member states decide how the funds are allocated. Disbursements are expected to begin in early 2027, subject to reforms and safeguards on financial oversight.
A remaining gap
Even with the loan, Kyiv still needs to cover an estimated €70 billion budget gap next year, as Russia’s strikes on energy and industry weigh on Ukraine’s economy.
Sources
Image note: The featured image was generated by AI based on the content of this article. It is an illustration, not an actual photograph of the people, places or events described.
