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EU to approve terms of EUR 90 billion loan on Monday

Main points
  • The EU is preparing to approve a EUR 90 billion loan for Ukraine as early as Monday.
  • The first tranche, amounting to over EUR 9 billion, could be disbursed as early as June.
  • The bulk of the first tranche will be used to purchase domestically produced drones.
The European Union-Ukraine. Photo: facebook
The European Union-Ukraine. Photo: facebook

The European Union is preparing to approve the terms of a massive EUR 90 billion loan for Ukraine as early as Monday, May 18, according to Politico.

This step will bring Kyiv closer to receiving the first tranche of over EUR 9 billion, which could arrive as early as June. Brussels will make the final decision immediately after the parties agree on the details of loan repayment using future reparations from russia or by utilizing frozen russian assets.

The bulk of the first tranche—about EUR 5.9 billion—will be allocated for the purchase of domestically produced drones. “The Commission aims to make the first disbursement as early as possible in the 2nd quarter of 2026. The first disbursement will cover the purchase of drones from Ukraine, for Ukraine,” a European official noted. The remaining funds, amounting to over EUR 3 billion, are planned to be used to cover critical budgetary expenses, in particular to pay salaries to Ukrainian military personnel.

Despite significant progress in allocating funds, European leaders are already considering Ukraine’s financial needs for 2027. The European Commission emphasizes that the EU is currently Ukraine’s largest and most stable financial partner, having provided a total of over EUR 200 billion in aid since the start of the full-scale invasion. The approval of the new loan program on May 18 is expected to mark another step toward strengthening the country’s defense capabilities and economic stability.

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