EU’s First Tranche of $98B Ukraine Loan Could Land in June

The first tranche of the European Union’s roughly $98 billion (€90 billion) loan for Ukraine could be disbursed as early as late May or early June, according to a senior EU official, offering Kyiv a critical financial bridge as it continues to resist Russia’s full-scale invasion, Reuters reported on April 21.

The official said that Ukraine’s funding needs for 2026 are now effectively covered, with the EU expected to begin releasing funds in the coming weeks while other international partners continue to provide interim support.

Ukraine had faced the prospect of running out of available funding as early as April, before the EU agreed last year on the large-scale loan package covering 2026 and 2027. The program is designed to ensure the country’s financial stability as the war enters its fifth year.

However, the rollout of the funding has been slowed by political obstacles within the EU. Hungarian Prime Minister Viktor Orbán had blocked the disbursement, though the situation shifted after his electoral defeat on April 12.

“There may still be some movement while Prime Minister Orban is in office. I do not want to be overly optimistic before seeing it happen, given the many delays so far,” European Economic Commissioner Valdis Dombrovskis said.

“If it happens this week, that would be very good. If not, we will have to wait for the new prime minister. In any case, I believe we will be able to unlock the situation,” he added.

The EU loan is expected to cover roughly two-thirds of Ukraine’s financing needs over the two years, with the remaining funding anticipated from international partners, including Canada, Japan, the United Kingdom, and Norway.

Of the total package, about $49 billion (€45 billion) is planned for disbursement in 2026, with approximately $31 billion (€28 billion) allocated to defense-related needs and $19 billion (€17 billion earmarked for general budget support.

The remaining funds are scheduled for release in 2027, with disbursements tied to Ukraine’s continued reforms as it aligns its legal and economic framework with European Union standards as part of its long-term integration path.

In addition to financial assistance, the European Union recently officially approved its 20th package of sanctions against Russia. The new measures include over 100 individual restrictions and increase pressure on the energy sector and the “shadow fleet.”

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