EU disburses first €3 Billion tranche of €90 Billion loan package for Ukraine's recovery

Jun 25, 2026

The European Union has disbursed the first €3 billion tranche of a €90 billion loan package to support Ukraine's recovery and budget. Announced at a recovery conference in Poland on June 25, 2026, the funding is accompanied by a separate €6 billion defense package for drones and a €220 million equity fund. However, diplomatic tensions flared as Ukrainian President Volodymyr Zelenskyy withdrew from the conference following a historical dispute with Polish President Karol Nawrocki.

EU loan disbursement to Ukraine

▪The initial disbursement to Ukraine is the first of three scheduled instalments for 2026 under the European Union's macro-financial assistance programme, which totals €8.35 billion for the year.
▪Future payments under the European Union's macro-financial assistance programme depend on Ukraine meeting agreed reforms, including improving tax collection, customs administration, and public financial management.
▪The European Union disbursed the first tranche of a €90 billion loan package to Ukraine on June 25, 2026, to support the country's budget and recovery.

European financial support commitments

▪The €90 billion Ukraine Support Loan, adopted in 2026, is designed to provide funding over a two-year period to keep Ukraine's economy functioning and support long-term reconstruction.
▪Since the beginning of Russia's full-scale invasion in February 2022, the European Union and its member states have provided over €200 billion in economic, financial, and military support to Ukraine.

European military support commitments

▪The European Union will release the first payment from a separate €6 billion defence package dedicated to drone procurement in late June 2026.
▪Around €28.3 billion of the €90 billion Ukraine Support Loan has been earmarked to boost Ukraine's defence industry in 2026.

Gdansk recovery conference investments

▪The Ukrainian delegation planned to sign 160 deals totaling over €10 billion during the recovery conference in Gdansk on June 25, 2026.
▪European leaders meeting in Gdansk launched a European equity fund with an initial public package of up to €220 million to encourage private investment in Ukraine.

Ukraine-Poland diplomatic dispute

▪The Ukrainian Insurgent Army is accused in Poland of wartime killings of tens of thousands of Poles in Volhynia and Eastern Galicia, which Poland qualifies as genocide.
▪Polish President Karol Nawrocki stripped Ukrainian President Volodymyr Zelenskyy of Poland's highest state honor in June 2026 because Zelenskyy named a military unit after the Ukrainian Insurgent Army.
▪Ukrainian President Volodymyr Zelenskyy withdrew from the recovery conference in Poland following a dispute with Polish President Karol Nawrocki over World War II historical events.

Ukraine's EU membership trajectory

▪Ukraine officially started European Union membership negotiations on June 15, 2026.
▪European Commission President Ursula von der Leyen reasserted the European Union's financial commitment to Ukraine shortly after the commencement of Ukraine's EU membership negotiations.