Ukraine to Use EU Funds for Troop Pay in First-Ever Shift, Lawmaker Says

Until now, Kyiv operated under a strict split: all domestically raised funds went to defense, while foreign aid covered only civilian needs such as pensions, healthcare, and public services. Make us preferred on Google Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied This handout photograph taken and released by the press service of the 65th Mechanized Brigade of Ukrainian Armed Forces on March 21, 2026 shows Ukrainian recruits resting as they complete basic military training at an undisclosed location in Zaporizhzhia region, amid the Russian invasion of Ukraine. (Photo by Andriy Andriyenko / 65th Mechanized Brigade of Ukraine / AFP) Content Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied Flip Make us preferred on Google Ukraine will, for the first time, be able to use part of its international financial aid to pay its soldiers, following approval of a massive €90 billion ($106 billion) European Union loan backed by frozen Russian assets. The move marks a shift from Kyiv’s wartime financing model and comes as the EU finalizes one of its largest-ever support packages for Ukraine. Follow our coverage of the war on the @Kyivpost_official . Lawmaker Arseniy Pushkarenko of the ruling Servant of the People party said the change allows Ukraine to redirect some external funding toward military salaries – something that had been impossible until now. Until recently, Ukraine maintained a strict divide: all domestic revenues were funneled into defense, while foreign aid covered only civilian spending, including pensions, healthcare, and state services. “That model is changing,” Pushkarenko said on Ranok.LIVE . “For the first time, part of international assistance can go directly to military pay.” The shift follows the EU’s formal approval on April 23 of the €90 billion loan , adopted alongside the bloc’s 20th sanctions package against Russia after Hungary and Slovakia dropped their vetoes. The decision, passed by written procedure after member states agreed to amend the EU’s long-term budget for 2021–27, unlocks what officials called the “final key piece” needed to begin disbursing funds. Other Topics of Interest Ukraine, Norway to Launch Joint Production of ‘Mid-Strike’ Drones Ukraine and Norway will jointly produce thousands of mid-strike drones in Norway, with all systems destined for Ukraine’s Defense Forces, the Defense Ministry said. The funding is expected to cover roughly two-thirds of Ukraine’s external financing needs for 2026–27, with the rest to be filled by G7 countries, the International Monetary Fund, and other partners. Disbursements could begin as early as late spring. The deal was held up for months amid disputes over Russian oil transit. Hungary had blocked the loan over concerns about the Druzhba pipeline, while Slovakia tied its approval to the restoration of oil flows. The pipeline resumed operations on April 22, clearing the way for the agreement. The loan itself comes with unusually favorable terms, Pushkarenko said. Ukraine will not have to repay it until after the war ends, while interest payments will be covered by partner countries.  Initial plans envisioned fully securing the loan with those assets, but legal constraints forced a revision. Repayment is now expected to rely on future Russian reparations, with the frozen assets serving as a financial guarantee. Pushkarenko said the added flexibility could help tackle a growing concern for Ukraine’s military: motivation. He called for a reassessment of pay, particularly for frontline troops and newly mobilized recruits, arguing that stronger financial incentives are essential to sustaining the war effort. “We need to rethink how we motivate those already fighting, especially on the front line, and those joining through mobilization,” he said. Kyiv Post is Ukraine’s first and oldest English news organization since 1995. Its international market reach of 97% outside of Ukraine makes it truly Ukraine’s Global – and most reliable – Voice.