The European Commission signs the memorandum with Kyiv, with the first aid installment of €3.2 billion expected by the end of June

Brussels – One month on from the final approval by the Council of the European Union, the implementation of the €90 billion aid package for Ukraine for the two-year period 2026–2027 is drawing ever closer. This morning (20 May), the European Commissioner for the Economy, Valdis Dombrovskis, officially signed the Memorandum of Understanding with Kyiv, a document detailing the procedures for using the European funds provided under the Macro-Financial Assistance (MFA).

The MFA is one of several financing channels that make up the overall package and, together with the Ukraine Facility, constitutes the non-military component of the aid. In particular, the €8.35 billion provided for under the MFA will be used to support Kyiv’s budget, ensuring immediate liquidity and covering budgetary requirements.

“The memorandum signed today,” emphasised Commission spokesperson Balazs Ujvari during the usual midday press briefing, “sets out the main parameters of the support provided for under the MFA, including the indicative size of the tranches and the conditions to be met for the disbursement of funds.” And the conditions set by Brussels are both political and economic.

“On the political front—Ujvari went on to explain—Ukraine must continue to uphold democratic procedures within the country, the rule of law and human rights. It must also continue its efforts to combat corruption.” As for economic conditions, the main focus is on implementing certain tax system reforms, the fundamental aim of which is to facilitate the Ukrainian government’s mechanisms for mobilising public revenue. “If these reforms are implemented,” added Ujvari, “our estimates predict the generation of around €6 billion in additional revenue for the state budget and the effect could already be visible by the end of this year.”

Furthermore, the tax measures proposed by Brussels aim to make public spending in Kyiv more efficient and modernise the tools used to manage public finances.

During the briefing, the spokesperson for the Berlaymont Building also provided further details on the amount of money to be disbursed and the expected timeline. “The MFA has a total capacity of €8.35 billion, and the first disbursement will be €3.2 billion,” he explained. “Our objective,” he continued, “remains to disburse the funds by the end of June, but we will only be able to do so once Ukraine has also signed the memorandum, demonstrating that it has met all the conditions set out.”

While waiting for Kyiv to meet its obligations, Dombrovskis celebrates today’s outcome. “With today’s signing, we are on track to move towards the first disbursement of the Support Loan to Ukraine,” he said, before emphasising that in this way “we will boost the resilience of the Ukrainian economy, increase domestic revenue and strengthen the fight against corruption.” “Once again,” remarked the former Prime Minister of Latvia, “we are demonstrating the European Union’s firm commitment to standing by Ukraine for as long as necessary.”