Ukraine will direct the first tranche of the European Union’s €90 billion loan toward the development of domestic defence production and strengthening the protection of energy infrastructure. President Volodymyr Zelenskyy announced this at a joint press conference in Kyiv with Moldovan President Maia Sandu.
According to Zelenskyy, the first tranche will be aimed at the “domestic production of Ukraine’s defence,” including drones, miltech and related defence technology segments. The president said that delays in financing had led to lost time and slower growth in production capacity, but Ukraine plans to make up for those volumes.
A separate area for the use of the funds is energy. Zelenskyy said Ukraine must prepare as much as possible for the next winter and strengthen the protection of energy system facilities. According to him, part of the financing for these needs will come from the central budget in addition to local budget resources; the amount involved is “several billion” euros for energy protection.
Earlier, the president said Ukraine expected to receive the first tranche of the EU loan in late May or early June. The funds are to be used to strengthen the army, support the domestic production of Ukrainian weapons, including drones and electronic warfare systems, as well as to meet the state’s social obligations.
On April 23, the European Union finalized the €90 billion loan for Ukraine. According to the Council of the EU, the financing is intended to cover Ukraine’s most urgent budgetary and defence-industrial needs in 2026–2027. The loan will be financed through EU borrowing on the capital markets and backed by the EU budget; it is planned to be repaid from reparations that Russia is expected to pay to Ukraine.
Of the total €90 billion, around €30 billion is earmarked for Ukraine’s macroeconomic support, while €60 billion is intended for investment in defence-industrial capabilities, including the procurement of defence products. In 2026, Ukraine is expected to have access to €45 billion, of which €28.3 billion is specifically allocated to support defence-industrial capacity.
According to Ukrainska Pravda, the first defence tranche from the “military” portion of the loan may amount to €6 billion and is expected to arrive by June. These funds are expected to be used for the procurement of Ukrainian-made drones; subsequent packages may include ammunition, drones and air defence systems.
The approval of the loan took place simultaneously with the adoption of the EU’s 20th package of sanctions against Russia. The new restrictions target Russian energy revenues, the shadow fleet, the financial sector, crypto infrastructure, and Russia’s military-industrial supply chains.
