Newsletters
The European Union is set to disburse €3.2 billion ($3.7 billion) in budget support to Ukraine next month, marking the first payment under a broader €90 billion assistance package approved in April, EU officials said on Wednesday.
European Commissioner for Economy Valdis Dombrovskis said the payment would be the first installment under the macro-financial assistance (MFA) component of the package after Brussels and Kyiv finalized the underlying conditions.
“We will proceed with a first MFA instalment around mid-June: 3.2 billion euros,” Dombrovskis told reporters, adding that the payment remains conditional on Ukraine rapidly ratifying the related agreement.
The European Union approved the €90 billion package in April after months of negotiations, including objections from Hungary that had delayed the process.
Under the scheme, Ukraine is expected to allocate around €60 billion toward defense spending as it continues to confront Russia’s invasion.
The remaining funds are intended to support reconstruction efforts and help sustain government operations amid a balance-of-payments crisis caused by the war.
Dombrovskis said the macro-financial assistance component would be linked to reforms aimed at improving public spending efficiency and aligning tax avoidance rules with EU standards.
Brussels and Kyiv are still negotiating some technical details and conditions tied to the remaining funds, he added.
Dombrovskis said the first disbursement related to military spending was also expected soon.
The EU estimates the package will cover roughly two-thirds of Ukraine’s financing needs for this year and next.
“It’s important for other G7 partners—and other partners—to contribute their part,” Dombrovskis said.
Under the agreement, Kyiv would only begin repaying the funds after receiving compensation from Russia for wartime destruction.
Set as preferred source
Set as preferred source
1 min read
1 min read
