European Union disburses additional 4.36 billion euros to support Ukraine

Brussels, Nov 5 (KUNA) -- The European Union announced on Thursday the disbursement of a new tranche worth 4.36 billion euros to Ukraine under its 90-billion-euro support loan program, aiming to help meet its financing needs, address the repercussions of the Russian war, and ensure the continued functioning of state institutions and essential public services.

In a statement, the European Commission said the new tranche includes 3.7 billion euros under the second installment of the macro-financial assistance package scheduled for 2026, plus 658 million euros earmarked to support Ukraine’s defense capabilities and purchase essential military equipment.

The statement quoted Commission President Ursula von der Leyen as saying that Ukraine is preparing to enter its fifth winter of war amid ongoing Russian attacks, and affirmed that EU support would remain steadfast alongside efforts to achieve a just and lasting peace in the country.

She explained that the budget support tranche is part of a macro-financial assistance package totaling 8.35 billion euros for 2026, designed to meet Ukraine’s financing needs, enhance the sustainability of public spending, and improve public financial management.

The Commission added that Ukraine had met the 12 political and reform conditions required for the disbursement, including the adoption of tax legislation related to income generated through digital platforms, the abolition of the value-added tax (VAT) exemption on low-value commercial imports sent by parcel, as well as improvements in tax compliance, the development of public investment management and customs administration, and the strengthening of external audit.

On the defense side, the Commission noted that the 658 million euros represents the seventh defense-specific tranche under the support loan and will be used to purchase drones, missiles, radar systems, electronic warfare equipment, and air defense ammunition. It added that the majority of these funds would be allocated to procuring equipment from Ukrainian companies, supporting the domestic defense industry and its role in developing the military capabilities required for modern warfare.

The Commission clarified that the total amount of EU financial support available to Ukraine for the remainder of 2026 stands at 25.2 billion euros, including 20.9 billion euros under the EU support loan, comprising 11.9 billion euros to bolster defense industrial capacity and 9 billion euros to support the budget.

It further added that approximately 4.4 billion euros remain available under the Ukraine Budget Support Facility for the current year, subject to the fulfillment of the conditions required for the disbursement of funds. (End) ARN / T.M.A