Brussels – The European Commission today (5 November) disbursed 4.36 billion euros to Ukraine as part of the Ukraine Support Loan. This disbursement comprises 3.7 billion euros relating to the second tranche of the macro-financial assistance (MFA) agreed for 2026 and 658 million euros earmarked for the defence component of the loan. Since the start of Russia’s war of aggression, the EU and its Member States have provided Ukraine with total support amounting to 235.9 billion euros, including 3.8 billion euros from the proceeds of frozen Russian assets.
The 4.36 billion disbursed today will help to meet Ukraine’s financial needs, ensuring the smooth running of the state and its essential public services. Furthermore, it will help meet the country’s urgent defence needs by procuring essential military equipment. “As Russia continues its relentless attacks, Ukraine is about to start its fifth wartime winter,” said the President of the European Commission, Ursula von der Leyen. “And as efforts to achieve a just and lasting peace for Ukraine continue, so too does the EU’s unwavering support. With today’s €4.36 billion disbursement, we are helping Ukraine provide essential public services and address its urgent defence needs,” she added.
Today’s disbursement in support of the budget is the second of three instalments scheduled for 2026 under the macro-financial assistance (MFA) programme, which totals 8.35 billion euros. The Commission notes that the MFA is governed by a memorandum of understanding that sets out the preconditions, reforms and policy measures linked to the disbursements. For the Commission, these are “designed to help Ukraine mobilise domestic revenues, improve the sustainability and quality of public expenditure, and strengthen its public financial management systems.” Payments are made in instalments, once Ukraine has implemented the required reforms and met the stipulated conditions.
The Berlaymont Building stresses that for this second tranche to be released, Ukraine has fulfilled all 12 agreed political conditions, including measures to mobilise domestic revenue – through the adoption of legislation on the taxation of income generated via digital platforms, the removal of the VAT exemption for low-value commercial imports contained in parcels, and the improvement of tax compliance. Furthermore, Kyiv has “advanced reforms to improve budget planning and public investment management, modernise customs systems and strengthen external audit.” According to Brussels, “this is a testament to the country’s efforts in progressing on its reform agenda despite the intensified war situation.”
In addition to the funds allocated for the running of the state, the Commission is disbursing a further 658 million euros under the defence component of the Ukraine Support Loan. This is the seventh instalment earmarked for defence through this instrument. The funds will support the procurement of drones, missiles, radar, electronic warfare systems and ammunition for Ukraine’s air defence. “The majority of this funding will be used to procure equipment from Ukrainian companies,” as Ukraine’s defence industry plays a key role in developing and supplying the capabilities required to meet the demands of modern warfare.
The EU Commission noted that, for the rest of 2026, 25.2 billion euros in EU financial support for Ukraine is available. This figure includes approximately 20.9 billion euros to be disbursed as part of the loan to support Ukraine, of which 11.9 billion euros is earmarked to strengthen the country’s defence industrial capacity and 9.0 billion euros to support the budget. In addition, almost 4.4 billion euros for budgetary support is available this year through the Ukraine Facility: this amount does not include the top-up from the loan to support Ukraine. The release of these funds is subject to the fulfilment of the conditions set out in the relevant legal bases.
English version by the Translation Service of Withub
