EU to transfer first tranche of €90bn loan to Ukraine in June: it will be allocated for drones
Drone Industry
The European Union will transfer the first tranche from a new €90 billion loan package to Ukraine in June, with the funds to be used to purchase drones for the Ukrainian army.
Kaja Kallas, the EU’s top diplomat, said this on 12 May after a meeting of EU defense ministers in Brussels, Censor.NET reports, citing Radio Liberty.
According to Kallas, drones are now a "key capability" for holding back Russian troops on the front line. At the same time, she stressed that even after the launch of the loan programme, bilateral military assistance to Ukraine must continue. The EU must also continue sanctions pressure on Russia.
"Ukraine will receive the first tranche of the €90 billion loan as early as June, and these funds will be directed straight to drones," Kallas said.
EU defense ministers also discussed €6.6 billion blocked in the European Peace Facility.
For more than two years, Hungary has vetoed the use of money from this fund to partially compensate the cost of weapons provided to Ukraine by member states. During this time, new mechanisms for financing weapons for Ukraine have emerged, such as the €90 billion loan.
According to Kallas, member states supported the search for mechanisms to unblock these funds, although differences remain between countries.
"We will prepare the relevant proposals, as member states, of course, have different ideas on how exactly to do this, and we need a balanced approach that will take all positions into account," Kallas said.
Separately, the European Union is working on security guarantees for Ukraine in the event of a ceasefire. This includes strengthening the EU Satellite Centre to monitor a possible truce, tracking Russia’s "shadow fleet," and countering sanctions evasion.
Background
- President Volodymyr Zelenskyy said the European Union had unblocked a €90 billion loan for Ukraine and the 20th package of sanctions against Russia.
- European Commission President Ursula von der Leyen said Ukraine would receive €6 billion to purchase domestically produced drones under the €90 billion loan.
