EU to disburse first €45 billion of €90 billion loan to Ukraine, including €6 billion for Ukrainian-made drones

The European Union will disburse the first €45 billion ($52.9 billion) installment of its €90 billion ($106 billion) loan to Ukraine within the current quarter, European Commission President Ursula von der Leyen announced during a speech at the European Parliament.

One-third of the 2026 funding is allocated to Ukraine’s budgetary needs, with two-thirds dedicated to defense. The first military package, worth approximately €6 billion ($7.05 billion), will be used to procure drones “from Ukraine, for Ukraine,” von der Leyen said. “Our message is clear: we will continue our support to the brave Ukrainian people and their armed forces,” she stated, adding that the EU is “doubling down” on its support as Russia intensifies its aggression.

According to Bloomberg sources, another portion of the aid — €8.4 billion ($9.88 billion) in financial support — may become conditional on Ukraine amending its preferential tax regime for small businesses. Currently, many sole proprietors (FOPs) and small companies benefit from a flat 5% revenue tax. The EU proposal suggests introducing a 20% value-added tax (VAT) for businesses that exceed a specific income threshold.

A Kyiv Post government source said the government had managed a “politically painful delay” on introducing VAT for FOPs. Lawmakers recently stalled the reform, and Kyiv is currently discussing alternatives with the International Monetary Fund. The reform could generate an additional Hr.40 billion ($888.8 million) annually for the state budget. Finance Minister Serhiy Marchenko reported that Ukraine needs $52 billion in foreign funding this year to cover defense and social costs.