EU transfers 3.2 billion euros to Ukraine: second tranche of loan to follow later

©picture alliance / ROPI | Ramirez/EUC

The European Union is transferring the first tranche of a new 90-billion-euro loan to Ukraine today (Thursday, June 25). This consists of 3.2 billion euros in macro-financial assistance, which, according to European Commission President Ursula von der Leyen, is intended to help Kyiv weather the years of war while simultaneously kickstarting reconstruction.

Von der Leyen announced the payment during the Ukraine Recovery Conference in Gdańsk, Poland. There, she said that the EU “wants not only to help strengthen Ukraine, but also to help it grow and flourish as a free and European country.” This first tranche is part of a broader loan totaling 90 billion euros, to be disbursed over 2026 and 2027.

Of that 90 billion euros, 60 billion euros is earmarked for defense equipment and 30 billion euros for budgetary support. The European Commission also announced that the first tranche of a separate 6-billion-euro defense package, intended for drone purchases, will follow in the coming days.

This payment did not come out of nowhere. In May, the EU and Ukraine signed a memorandum outlining the conditions for the aid, including reforms related to taxation, public financial management, and customs regulations. Ukraine met seven policy conditions for this first disbursement, the Commission reported.

First of three tranches

The funding is important because the war continues to put severe pressure on the Ukrainian economy and public finances. The EU says the aid is intended to help maintain macrofinancial stability, keep essential public services running, and finance priority spending, including recovery and reconstruction.

According to the Commission, the current payment is the first of three tranches planned for this year under the new macro-financial package. A second disbursement of approximately 3.7 billion euros is expected in September, and a third of approximately 1.45 billion euros by the end of the year. The payments will be made only if Ukraine continues to comply with the conditions.

Von der Leyen also pointed out that since the start of the Russian invasion, the EU and its member states have already provided more than 200 billion euros in economic, financial, and military aid. According to the Commission, that total support now amounts to 211.3 billion euros, including funds from frozen Russian assets.

©picture alliance / ROPI | Ramirez/EUC - illustrative image of the European summit on June 18 in Brussels.