Ukraine to Receive First €6 Billion «Military» Tranche from EU in June from €90 Billion Loan
Ukraine will receive the first €6 billion tranche from the EU's €90 billion «military» loan in June. The funds are earmarked for purchasing Ukrainian-made drones, and the loan terms allow financing orders placed since January. The EU Council approved budget changes on April 23 to facilitate these funds.
Ukraine expects to receive the first tranche of 6 billion euros from the «military» component of the European Union's 90-billion-euro loan as early as June. The exact date of the funds' arrival is currently unknown, as a series of mandatory procedures must precede it.
First, Ukraine must open a special bank account in the German Federal Bank (Deutsche Bundesbank) within the EU. Although this procedure typically takes several months, Ukraine and Germany have agreed to accelerate it. Additionally, Kyiv must grant the EU monitoring rights over expenditures from this account. The EU also confirmed that Kyiv is already able to conclude contracts for arms supplies, and payments can be made from the received funds, as the loan conditions allow for financing military orders placed since January of this year.
The first defense tranche will be allocated for the procurement of Ukrainian-made drones. The schedule for subsequent disbursements of the «military» component of the loan has not yet been approved, but they are expected to occur more rapidly. According to «European Pravda», the next package may include ammunition, drones, and air defense systems. It is important to note that there are no conditions attached to receiving the defense funds, unlike the «financial» component of the EU loan.
The EU Council, on April 23, adopted changes to the EU's long-term budget for 2021-2027 through a written procedure, which will allow for the provision of 90 billion euros in loans to Ukraine in 2026-2027.