Euractiv: The first tranche of the European loan for Ukraine will go to the budget. It was planned to be directed to drones

The first tranche (€3.2 billion) of the European Unionʼs €90 billion loan for Ukraine will be allocated to budget support. It was planned that €5.9 billion would be for drone production.

Euractiv writes about this, citing three European officials.

The first tranche is expected to be disbursed during the Ukraine Recovery Conference to be held in Gdansk on June 25-26. This amount is part of the €30 billion foreseen for macro-financial assistance for 2026-2027.

Sources said that the European Commission will announce the second tranche for Kyivʼs defense needs later in June.

The European Commission previously stated that the first installment of €5.9 billion was planned to be allocated to allow the purchase of drones with components manufactured outside the bloc or in Ukraine. Two sources told the publication that the plans were changed for technical reasons, as the EU needs to ensure proper monitoring of the use of funds.

• Of the €45 billion of European credit for 2026-2027, €8.35 billion will be allocated to the Ukrainian Facility program, €8.35 billion to the macro-financial assistance program for Ukraine, and €28.35 billion to support Ukraineʼs defense-industrial potential.
• The Commission also allowed Ukraine to use this money to purchase drones and components for them outside the EU if they are urgently needed and have no analogues in Europe. The loan will be repaid from the proceeds of frozen Russian assets in European banks.

Author: Khrystyna Pitsuriak

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