Ukrainian President Volodymyr Zelenskyy reported receiving positive responses from the EU and IMF regarding assistance with Ukraine's $27 billion budget deficit, warning the funding gap could leave the country short of weapons and facing serious challenges with drone production this winter.
Ukraine has received a €3.3 billion tranche from the European Union under the Ukraine Support Loan program, which Prime Minister Serhii Koretskyi confirmed will be used to purchase missiles and drones. The amount is smaller than the previously promised €4.7 billion due to delays in processing Ukrainian receipts.
The European Union received €1.4 billion ($1.6 billion) in windfall profits generated from interest on immobilized Russian Central Bank assets held in EU depositories, with the funds earmarked for Ukraine's defense and reconstruction. EU Commission President Ursula von der Leyen stated that Russia must pay for the destruction it has caused.
The European Union has released an initial payment of approximately €3 billion as the first installment of a €90 billion loan commitment to support Ukraine's post-war recovery and defense capabilities. The announcement was made at a conference on Ukraine's recovery held in Poland.
A major conference on Ukraine's post-war reconstruction opened in Poland without President Volodymyr Zelensky, who boycotted the event amid a diplomatic dispute with Warsaw over historical differences, including World War II-era issues. Ukrainian Prime Minister Yulia Svyrydenko attended instead as Polish PM Donald Tusk called for 'mutual respect' between the allies.
Polish President Karol Nawrocki revoked Ukraine's President Volodymyr Zelenskyy's highest state honor following controversy over Zelenskyy naming a Ukrainian military unit after a World War II formation that killed tens of thousands of Poles. The diplomatic rift has led Zelenskyy to skip a postwar reconstruction conference in Poland.
The European Union signed a memorandum of understanding with Ukraine on May 20, 2026, conditioning portions of its €90 billion aid package on unpopular tax reforms demanded by the IMF. An initial €3.2 billion budgetary support payment is expected in mid-June pending Ukrainian parliamentary ratification, with €5.9 billion allocated for drone purchases.
