Ukraine Support Loan: EU signs Memorandum of Understanding with Ukraine paving the way for macro-financial assistance

On 21 May, European Commissioner for Economy and Productivity Valdis Dombrovskis, on behalf of the European Commission, signed a Memorandum of Understanding (MoU) with Ukraine, which will underpin the upcoming macro-financial assistance (MFA) under the Ukraine Support Loan. This follows the formal approval by participating Member States in the MFA Committee on 18 May.

The MoU sets out the key parameters for the MFA support, including the indicative size of instalments and the conditions to be met for MFA disbursements. These include Ukraine’s continued respect for effective democratic mechanisms, the rule of law, including the fight against corruption, and respect for human rights.

The MoU also sets out the policy conditions that Ukraine will need to fulfil before each MFA instalment can be disbursed. In line with the Ukraine Support Loan regulation, the policy conditions have a strong fiscal focus and are structured around three main pillars: revenue mobilisation, public spending efficiency, and public financial management systems. 

The conditions for the first disbursement include actions across all three pillars, including steps towards the taxation of income earned through digital platforms, the development of sectoral strategies for public investment, and the update of the Ukrainian Customs Code.

Valdis Dombrovskis said that with this signing, the EU is “advancing towards the first disbursement of the Ukraine Support Loan”. 

“This support will strengthen the resilience of Ukraine’s economy, boost domestic revenues, and reinforce the fight against corruption. It is tied to clear reform conditions and speaks once again for the EU’s steadfast commitment to stand with Ukraine for as long as it takes,” said Dombrovskis.

Following the signature on 21 May, the MoU can now be signed and ratified by Ukraine. Once these steps are completed and the MoU has entered into force, the Commission will proceed swiftly with the remaining steps required to enable the first MFA instalment of €3.2 billion in the second quarter of 2026, subject to Ukraine fulfilling the related conditions.

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