European Commission starts €3.9 billion drone disbursement under Ukraine support loan
The European Commission is starting a €3.9 billion disbursement for drone procurement to support Ukraine's defence during Russia's ongoing war. The payment is the first part of an initial tranche of about €6 billion within the wider €90 billion Ukraine Support Loan covering budget and defence needs in 2026 and 2027.
Highlights
- European Commission begins disbursement today of €3.9 billion in drone funding to Ukraine, constituting the first tranche of rapid military equipment aid.
- The drone tranche is part of the broader €90 billion Ukraine Support Loan, allocating €60 billion for defence support and €30 billion for budgetary aid through 2027.
- Since the start of Russia's war, EU support to Ukraine totals €211.3 billion, including €3.8 billion from immobilised Russian assets.
First tranche targets drone procurement
As reported by the European Commission, the payment begins today as the first instalment under a drone funding package designed to help Ukraine secure critical military equipment quickly and in sufficient volumes.The disbursement follows a separate €3.2 billion payment made to Ukraine on 25 June under the dedicated Macro-Financial Assistance programme. Further payments are due in the coming days until the first drone tranche is fully covered, in line with Ukraine's payment requests.
Commission President Ursula von der Leyen says the funding supports Ukraine's defence through advanced drone technology and forms part of Europe's broader security effort. The Commission also says it is checking the contracts submitted with the request to ensure the financing is used for procurement agreed with the Commission and EU member states.
Broader defence support expands in 2026 and 2027
The drone allocation sits within the larger €90 billion Ukraine Support Loan, which includes €30 billion in budgetary aid and €60 billion in defence support across 2026 and 2027. In 2026, €28.3 billion of that defence package is due to be disbursed to strengthen Ukraine's defence industrial capacity.Upcoming disbursements are set to continue covering drones while extending to ammunition, missiles and air defence systems. Since the start of Russia's war against Ukraine, the EU and its member states have provided €211.3 billion in overall support, including €3.8 billion from the proceeds of immobilised Russian assets.
In our earlier coverage of the EU tightening safeguards for its steel sector, we outlined plans to cut duty-free import quotas and expand a 50% out-of-quota tariff across a wider range of steel products from July 1. We also noted that Brussels framed the measures as a response to rising import pressure and global overcapacity, while warning they could heighten tensions with major trading partners and adding stricter traceability rules to curb circumvention.
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