EU Plans to Disburse First Part of €90B of Loan With €6B on Ukrainian-Made Drones

European Commission President Ursula von der Leyen announced that the first defense package under the €90 billion loan will focus on drones produced within Ukraine. Make us preferred on Google Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied A self-defence unit volunteer shows intercepted Ukrainian FPV drones in Belgorod, the main city of Russia's western Belgorod region bordering Ukraine, on March 12, 2026, amid the ongoing Russian-Ukrainian conflict. (Photo by Andrey BORODULIN / AFP) Content Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied Flip Make us preferred on Google The European Union is set to disburse the first €45 billion ($52.9 billion) installment of its €90 billion ($106 billion) loan to Ukraine within the current quarter, European Commission President Ursula von der Leyen announced during a speech at the European Parliament. The 2026 funding is split between macrofinancial aid and military support, with one-third allocated to cover Ukraine’s budgetary needs and two-thirds dedicated to defense. The first military package, worth approximately €6 billion ($7.05 billion), will be used to procure drones “from Ukraine, for Ukraine.” Follow our coverage of the war on the @Kyivpost_official . “Our message is clear: we will continue our support to the brave Ukrainian people and their armed forces,” von der Leyen stated , noting that the EU is “doubling down” on its support as Russia intensifies its aggression.  According to Bloomberg sources, the other part, €8.4 billion ($9.88 billion) financial aid, may become conditional – Brussels may require Kyiv to amend its preferential tax regime for small businesses. Currently, many sole proprietors (FOPs) and small companies benefit from a flat 5% revenue tax. The EU proposal suggests introducing a 20% value-added tax (VAT) for businesses that exceed a specific income threshold.  Kyiv Post’s government source said the government had already managed a “politically painful delay” on introducing VAT for FOPs. Lawmakers recently stalled this reform, and Kyiv is currently discussing alternatives with the IMF. Other Topics of Interest King Charles Calls for ‘Shoulder to Shoulder’ Unity on Ukraine, Zelensky Responds The British monarch urged renewed transatlantic resolve in support of Ukraine. This reform could generate an additional Hr.40 billion ($888.8 million) for the state budget annually. However, the move remains a politically sensitive issue in Ukraine. These budget revenues are necessary as Finance Minister Serhiy Marchenko reported that Ukraine needs $52 billion in foreign funding this year to cover defense and social costs. Mariіa Boltryk has been a journalist since 2022 and has been working for Ukraine's leading news agency Interfax-Ukraine. At Kyiv Post, she covers macroeconomics in Ukraine and business-related topics.