Ukraine nears first €8.35 billion EU loan tranche
Photo: The European Commission has signed a memorandum providing €8.35 billion in aid to Ukraine (facebook.com/VDombrovskis)
The European Commission has signed a memorandum of understanding on €8.35 billion in macro-financial assistance to Ukraine as part of a €90 billion loan package, according to Valdis Dombrovskis, European Commissioner for Economic Affairs.
Today, the European Commissioner announces the signing of a memorandum of understanding with Ukraine regarding macro-financial assistance for Kyiv.
"With today’s signing, we are advancing steadily towards the first disbursement of the Ukraine Support Loan. This support will strengthen the resilience of Ukraine’s economy, boost domestic revenues, and reinforce the fight against corruption," Dombrovskis states.
He emphasizes that the memorandum sets out the policy conditions that Ukraine must fulfill before each tranche of macro-financial assistance is disbursed.
According to the regulations, these conditions are fiscally oriented and divided into three key areas:
- Revenue mobilization
- Efficiency of public spending
- Public finance management systems.
The conditions for the first tranche include actions across all three areas. Specifically, these involve the taxation of income generated through digital platforms, sectoral strategies for public investment, and reforms to Ukraine’s Customs Code.
According to the European Commissioner, "this support is tied to clear reform conditions and once again demonstrates the EU’s steadfast commitment to stand with Ukraine for as long as it takes."
The next step is for the Verkhovna Rada of Ukraine to ratify the document.
Once these procedures are completed and the memorandum enters into force, the European Commission will proceed with the remaining procedures to disburse the first tranche of macro-financial assistance in the amount of €3.2 billion in June 2026, provided Ukraine meets all requirements.
The European Commission also notes that the EU is covering two-thirds of Ukraine’s urgent military and financial needs through a support loan for 2026–2027. The remaining funds are to be provided by international partners.
The Memorandum of Understanding on macro-financial assistance is one of the documents serving as the basis for the disbursement of a €90 billion loan to Ukraine for 2026–2027.
On April 23, the European Union officially approved a €90 billion loan for Ukraine, which is planned to be repaid using Russian reparations.
European Commissioner for Enlargement Marta Kos announced the first disbursements as early as this week. European Commission President Ursula von der Leyen had previously mentioned €6 billion for the current quarter.
For a long time, Hungary blocked the process; then-Prime Minister Viktor Orbán refused to vote in favor due to a dispute over the Druzhba oil pipeline.
