The planned disbursement represents the first tranche of a large-scale macro-financial assistance loan designed to sustain Kyiv amid its ongoing war with Russia. The funds are expected to be formally unlocked once the European Commission approves the necessary memorandum of understanding, which could take place as early as Monday.

Officials said the initial package will be divided into two main components. Around €5.9 billion is expected to be allocated for the purchase of drones to strengthen Ukraine’s battlefield capabilities, while approximately €3.2 billion will be transferred directly to the Ukrainian government to cover budgetary and administrative costs, including military salaries.

The €90 billion loan package will be financed through joint European Union borrowing, following the collapse of earlier proposals to use frozen Russian sovereign assets—most of which are held in Belgium.

According to the agreement, half of the total funding is expected to be disbursed in 2026, with the remaining portion scheduled for 2027. Before the first payment is released, Ukraine’s parliament will be required to ratify the relevant agreements.

A spokesperson for the European Commission said the institution aims to proceed with the first disbursement “as soon as possible” in the second quarter of 2026, noting that initial funds will be specifically directed toward drone procurement for Ukraine.

Politico also reported that Ukraine faces a projected budget gap of at least €135 billion over the next two years, based on estimates assuming the war could end in 2026—an outlook increasingly viewed as unlikely among European officials.

In response, the European Commission is expected to continue urging allies including Canada, Japan, the United States, and the United Kingdom to contribute additional financial support to help meet Ukraine’s long-term funding needs as the conflict continues. (ILKHA)