Ukraine approves mechanism for deploying EU funds under the Ukraine Support Loan

The Cabinet of Ministers of Ukraine has approved the procedure for using the funds of the European Union’s special loan to support Ukraine’s defense-industrial capability in 2026-2027, providing for monitoring, control, audit, and reporting on their use.

The Government approved the procedure for the use of European Union funds raised under the special loan to support Ukraine’s defense-industrial capability in 2026-2027. This will allow the funds raised from the EU to be directed toward the purchase of weapons, military hardware, and equipment for the needs of the Ukrainian military.

The agreement on the Ukraine Support Loan was signed and ratified at the end of May. This is a European Union loan instrument worth up to EUR 90 billion, designed for 2026-2027. Out of this amount, EUR 60 billion will be directed to Ukraine’s defense needs. Already this year, EUR 28.3 billion in defense support is expected under the Ukraine Support Loan.

European funds will be directed not only toward weapon imports but also toward the direct funding of contracts with Ukrainian manufacturers. Procurement will be carried out, in particular, through international organizations according to their procedures, which will accelerate the delivery of critical components and finished weapons.

Monitoring, control, auditing, and reporting are being introduced in accordance with European Union requirements, which will ensure the transparent and most effective use of the raised funds.