EU to release first €9 billion tranche of €90 billion loan to Ukraine

The European Union is set to approve the conditions for a €90 billion macro‑financial loan to Ukraine on Monday. The first tranche, worth more than €9 billion, could be transferred by mid‑June. Of that amount, €5.9 billion is earmarked for the purchase of drones to strengthen Ukrainian defence, while €3.2 billion will cover budgetary and administrative costs, including soldiers’ salaries.

A memorandum of understanding defining the payment terms must be signed before the funds can be released, and the agreement still requires ratification by the Ukrainian parliament. The EU will also seek additional financing from other major economies – Canada, Japan, the United States and the United Kingdom – at the upcoming G7 finance ministers’ meeting in Paris.

The loan’s repayment plan hinges on Russia’s payment of war reparations after the conflict ends. If Moscow refuses, the EU has reserved the right to use frozen Russian state assets held in Europe to cover the debt. Earlier attempts to tap those assets were blocked by Hungary, Slovakia and the Czech Republic, while the Netherlands has called for renewed discussion.