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The European Union has disbursed the first $3.6 billion tranche of a new $90 billion support loan for Ukraine, marking the beginning of a major two-year financial assistance package aimed at helping Kyiv sustain its economy, strengthen its defense capabilities, and support post-war recovery efforts.

The announcement was made during the Ukraine Recovery Conference in Gdansk, Poland, where European leaders gathered to discuss Ukraine’s reconstruction and long-term support as the war with Russia continues.

Ukrainian Prime Minister Yulia Svyrydenko confirmed that the funds have already been transferred to Ukraine’s state budget and will be used to support essential government spending, maintain financial stability, and strengthen the country’s ability to defend itself.

“We are forced to innovate to survive, and this has become our superpower,” Svyrydenko said at the conference, thanking international partners for their continued support.

Ukraine has received the first €3.2 billion tranche under the EU’s Ukraine Support Loan.

The funds are already in the State Budget. They will help strengthen our defense capabilities and support Ukraine’s social resilience.

I am grateful to the @EU_Commission, @vonderleyen,… pic.twitter.com/ovlC9BbjM9

— Yulia Svyrydenko (@Svyrydenko_Y) June 25, 2026

Long-Term European Commitment

The loan is part of a broader EU support framework covering 2026 and 2027, with a total value of up to €90 billion. European Commission President Ursula von der Leyen described the first payment as a demonstration of Europe’s long-term commitment to Ukraine.

“Today, we are transferring the first tranche under this loan. This is indeed solidarity in action. It shows Europe’s support for Ukraine is here to stay,” von der Leyen said.

The conference brought together senior European officials, including German Chancellor Friedrich Merz and other leaders, who emphasized that support for Ukraine remains a strategic priority despite ongoing economic and political challenges across Europe.

The gathering served not only as a fundraising platform but also as a signal to Moscow that Western backing for Ukraine remains strong more than four years after Russia launched its full-scale invasion.

More Support Expected

EU officials indicated that additional funding packages are expected in the coming months. A second disbursement worth approximately $5-6 billion is expected to focus on Ukraine’s rapidly expanding drone production sector, which has become a key component of the country’s military strategy.

For 2026 alone, Brussels has allocated $45 billion under the support framework. Of that amount, $16.7 billion is designated for financial assistance, while $28.3 billion is intended for military support.

Since the beginning of Russia's full-scale invasion, the EU and its Member States have provided unprecedented economic, financial and military support.

Today, we are transferring the first tranche under the €90 billion Ukraine Support Loan.

This is European solidarity in… pic.twitter.com/gBeeXDa5oW

— Ursula von der Leyen (@vonderleyen) June 25, 2026

The remaining $45 billion is scheduled for 2027 and is expected to cover roughly two-thirds of Ukraine’s projected funding needs. Western partners are expected to provide the remaining share.

According to Ukraine’s Finance Ministry, the EU has provided more than $70 billion in budget support since the start of the war.

Finance Minister Serhii Marchenko described the latest transfer as an important step in ensuring the state can continue meeting its obligations while directing more domestic resources toward defense.

“This is not just another tranche. It is a resource that helps the state fulfil its obligations to citizens, maintain financial stability, and direct more domestic resources towards defense,” Marchenko said.

Political Challenges Delayed the Package

The launch of the loan package follows months of political negotiations within the EU. European leaders originally approved the assistance package in December after alternative plans involving Russia’s frozen state assets failed to gain sufficient support. Instead, member states agreed to establish the package through joint borrowing.

The process later faced delays after Hungarian Prime Minister Viktor Orban blocked a key legislative step earlier this year during a separate dispute involving Ukraine and the Druzhba oil pipeline.

The deadlock was eventually resolved, allowing Brussels to finalize the legal and technical arrangements necessary to begin transferring funds. Several EU member states, including Hungary, Slovakia, and the Czech Republic, negotiated exemptions from parts of the borrowing mechanism.

Conditions Attached to Funding

EU officials said future payments will be linked to reforms in Ukraine, particularly efforts to combat corruption and strengthen governance. Brussels has indicated that financial assistance could be temporarily suspended if significant reversals occur in these areas.

Military-related funding will also include provisions designed to support European defense industries. Much of the financing is expected to be directed toward weapons and ammunition produced within Europe.

However, EU officials acknowledged that some upcoming funding rounds may allow exceptions, particularly for drone production programs that require components sourced from outside Europe.

Ukraine is also continuing discussions with partners regarding the acquisition of additional air defense systems, including U.S.-made Patriot batteries, although it remains unclear whether future EU funding could be used for such purchases.

Recovery Efforts Accelerate

Alongside the financial assistance announcement, Ukrainian officials said more than 160 agreements worth over $10 billion are expected to be signed during the Ukraine Recovery Conference.

The agreements are expected to cover reconstruction projects, infrastructure development, energy security initiatives, and industrial investment aimed at supporting Ukraine’s long-term recovery.

European leaders stressed that their objective extends beyond helping Ukraine withstand the war. “Our ambition is not only to help Ukraine endure, but it is to help Ukraine grow and prosper as a free and European country,” von der Leyen said.

The latest disbursement marks the first practical step in what is expected to become one of the largest long-term financial support programs ever provided by the European Union to a non-member state, underscoring Europe’s commitment to Ukraine’s economic stability, reconstruction, and defense as the conflict with Russia continues.