European Commission disburses first €3.2 billion instalment to Ukraine under €90 billion Ukraine Support Loan

On 25 June, at the Ukraine Recovery Conference taking place in Gdansk, Poland, European Commission President Ursula von der Leyen announced the disbursement of €3.2 billion to Ukraine as the first instalment of the new macro-financial assistance (MFA). 

The MFA is a segment of the Ukraine Support Loan, under which €90 billion is expected to be made available to Ukraine in 2026 and 2027, covering both budget support and defence-related needs. The first instalment of the €6 billion defence package to support drone procurement will be disbursed in the coming days.

The disbursement constitutes the first of three payments foreseen this year under MFA, totalling €8.35 billion in 2026. The MFA is underpinned by a dedicated Memorandum of Understanding signed by the EU and Ukraine in May 2026, which sets out the preconditions, reforms and policy measures attached to the MFA operation. Payments are released in installments, subject to Ukraine’s satisfactory fulfilment of the relevant reforms and conditions. These are designed to help Ukraine mobilise domestic revenues, improve the sustainability and quality of public expenditure, and strengthen public financial management systems.

For the first instalment, Ukraine fulfilled seven policy conditions. These included measures to strengthen domestic revenue mobilisation, notably the extension of the military levy, the submission of draft legislation to the Ukrainian Parliament on the taxation of income earned through digital platforms and on the removal of VAT exemptions for low-value imported parcels. Ukraine also advanced reforms to improve public investment management, align customs legislation more closely with the EU acquis, strengthen customs governance, and reinforce the medium-term public financial management reform agenda.

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