Ukraine will not receive funding for drones in first tranche of EU loan - Media
Illustrative photo: drone financing is temporarily not included in the first package of EU credit support (Getty Images)
The European Union is preparing to disburse the first tranche of a large loan to Ukraine, but just before the decision, it has changed the allocation of several billion euros, according to Euractiv.
According to three EU officials quoted by the outlet, the first tranche under the €90 billion credit programme no longer includes €5.9 billion for defence needs. These funds were previously planned to finance the production and purchase of drones.
Instead, the package will provide €3.2 billion in budget support for Ukraine.
It is expected that the announcement of the first tranche will be made on Thursday, June 25, during the Ukraine Recovery Conference, which will be held in Gdańsk, Poland.
Why the first tranche was changed
Previously, the European Commission and the European External Action Service stated that the first package of assistance would allow Ukraine to purchase drones, including those using components produced outside the EU and Ukraine.
However, according to Euractiv sources, the implementation of this mechanism has been delayed due to technical issues, including the need to ensure proper oversight of how the funds are used.
At the same time, the interlocutors stressed that funding for Ukraine’s defense needs is not being cancelled. In the coming days, the European Commission may announce a second tranche that will be directed specifically to Kyiv’s military needs.
What the money will be used for
The €90 billion loan package is intended to support Ukraine in 2026–2027.
Of the total amount, €30 billion is expected to be allocated to macro-financial assistance for the state, while another €60 billion is intended to strengthen Ukraine’s defence capabilities.
According to one senior EU official, separate funding packages are also being prepared for the purchase of ammunition, air defence systems, and drones.
To receive the funds, Kyiv submits an assessment of its defence needs to the European Commission. Priority is given to the purchase of European-made weapons, although under certain conditions the funds may also be used to buy weapons produced outside the EU.
In addition, Norway continues to increase its military support for Ukraine. This month, the government announced a NOK 1.2 billion (about $126 million) allocation for the production and procurement of naval drones under the Nansen programme.
The funds will be used both for the development of new unmanned systems and for purchasing ready-made solutions from Ukrainian and Norwegian manufacturers.
