- €3.2 Billion Support Package Moves Closer to Release as Kyiv Advances Reform Commitments
BRUSSELS: The European Commission on Thursday signed a memorandum of understanding (MoU) with Ukraine under a major macro-financial assistance program, paving the way for a €3.2 billion disbursement expected in mid-June, pending ratification by Ukraine’s parliament.
The financial assistance forms part of the European Union’s broader €90 billion support framework aimed at ensuring Ukraine’s economic stability throughout 2026 and 2027 amid the ongoing conflict with Russia.
European Commissioner for Economy Valdis Dombrovskis confirmed that negotiations on the MoU had been successfully concluded.
“We have finalized negotiations with Ukraine on the memorandum of understanding underpinning our macro-financial assistance program as part of the Ukraine support loan,” Dombrovskis told reporters in Brussels.
He added that the agreement had already been signed on the European side and now awaits signature and ratification by Ukraine’s Verkhovna Rada before the EU can proceed with the first disbursement.
According to Dombrovskis, the comprehensive €90 billion loan package could be formally approved within days. The financing plan foresees €45 billion being released in 2026 and an additional €45 billion in 2027.
Of the funds allocated for this year, €28.3 billion has been designated for defense and military-related expenditures, while €16.7 billion will support Ukraine’s national budget and economic recovery efforts.
The general budget assistance will be equally divided between macro-financial support and the EU’s dedicated Ukraine Facility, which focuses on reconstruction, modernization, and long-term economic recovery.
Dombrovskis emphasized that the macro-financial assistance remains tied to a series of reform commitments by Kyiv, particularly in the areas of fiscal governance, domestic revenue generation, public spending efficiency, and financial management reforms.
He also noted that the European Commission had closely coordinated the conditions of the assistance package with the International Monetary Fund to ensure consistency and complementarity with Ukraine’s existing IMF-supported economic program.
BY: The Times Union
