Ukraine receives €3.9bn from the EU for drone production and urgent deliveries to the front

The special fund of the state budget has received €3.9bn from the EU. The funds will be spent on defence needs: production of Ukrainian drones, strengthening the defence industry’s capabilities and urgent deliveries for the front. This was reported by the Ministry of Finance of Ukraine.

This is the first payment within the €5.01bn defence tranche under the new Ukraine Support Loan financial instrument. Media previously reported that 2.8 million drones would be procured under this tranche at an average price of €2,000.

In total, the Ukraine Support Loan envisages up to €90bn of financing for Ukraine in 2026–2027. €30bn is allocated to economic and budgetary support, while €60bn is allocated to support defence needs.

In 2026, Ukraine is to receive up to €45bn under the Ukraine Support Loan. Of this, €28.3bn will go towards defence. The instrument is financed through EU borrowing on capital markets and is backed by the EU budget. The Ministry states that the loan is planned to be repaid using future reparations from Russia.