EU and Ukraine move closer to €90 billion support loan agreement

The European Commission on Thursday signed a memorandum of understanding with Ukraine on a macro-financial assistance programme, paving the way for a €3.2 billion disbursement expected in mid-June once the agreement is ratified by the Ukrainian parliament.

The macro-financial assistance forms part of the European Union’s broader €90 billion financing scheme aimed at supporting Kyiv throughout 2026 and 2027 as Ukraine continues to defend itself against Russia’s invasion.

EU finalises negotiations with Ukraine

European Economic Commissioner Valdis Dombrovskis said the negotiations surrounding the memorandum had been completed and confirmed that the document had already been signed by the European Commission.

“We have finalised our negotiations with Ukraine on the ⁠memorandum of understanding underpinning our macro financial assistance program as part of the Ukraine support loan,” Dombrovskis said, as cited in a Reuters report.

“I signed it this morning, and now it's still for the Ukrainian side to sign, and it also needs to be ratified by the Rada in Ukraine, so that we can then proceed with disbursements,” he told reporters.

The agreement represents a key step in the implementation of the EU’s large-scale financing package intended to provide economic and fiscal support to Ukraine over the next two years.

€90 billion package to support Ukraine

Dombrovskis said the agreement covering the entire €90 billion loan programme could be signed within days.

According to the commissioner, €45 billion from the package is scheduled to be disbursed this year, while the remaining €45 billion is expected to be provided in 2027.

The funding package is designed to help Ukraine maintain government operations and continue financing essential spending amid the ongoing war.

Of the funds expected to be disbursed this year, €28.3 billion has been allocated for military expenditure, while €16.7 billion is intended for general budget support.

The general budget support component is evenly divided between the macro-financial assistance programme and the Ukraine Facility, which is focused on Ukraine’s recovery, reconstruction, and modernisation efforts.

Aid tied to fiscal reforms

Dombrovskis said the macro-financial assistance would remain conditional on Ukraine implementing a series of reforms, particularly in the area of fiscal policy and public financial management.

According to him, the conditions attached to the programme are aimed at strengthening domestic revenue mobilisation, improving the efficiency of public spending, and enhancing Ukraine’s public financial management systems.

“We also coordinated closely with the International Monetary Fund so that conditions are consistent and, where necessary, let's say additional or complementary to the IMF program,” Dombrovskis said.

The commissioner noted that coordination with the International Monetary Fund was intended to ensure alignment between the EU’s financial support measures and the IMF’s existing programme for Ukraine.

The memorandum now awaits signing by the Ukrainian side and ratification by Ukraine’s parliament before the planned mid-June disbursement can move forward.