EU has refused to release funds to Ukraine ahead of schedule from €90 billion loan – FT
The European Union has rejected Ukraine’s request for an early disbursement of a portion of the funds from the 2027 financial support program. Brussels expects Kyiv to implement the agreed-upon reforms necessary for further disbursements.
According to Censor.NET, the Financial Times reports this.
This summer, Ukrainian President Volodymyr Zelenskyy estimated Ukraine’s additional defense needs at $27 billion. To cover this shortfall, the Ukrainian side asked the European Commission to advance a portion of the funds from the two-year, €90 billion Ukraine Support Loan program.
The program covers the years 2026–2027. The European Commission has allocated up to €45 billion in support for Ukraine for 2026, of which €28.3 billion is earmarked for strengthening defense and industrial capabilities, and up to €16.7 billion for budgetary support.
What conditions is the EU setting?
According to the FT, Brussels has refused to provide the funds earmarked for 2027 ahead of schedule. At the same time, the EU emphasizes that additional funding this year remains available, provided Ukraine implements the agreed-upon reforms.
As of October 2, the European Commission reported that Ukraine has access to an additional €33.7 billion in financial support through the end of 2026. Disbursements are contingent upon the fulfillment of the relevant conditions set by Ukraine and the EU.
In particular, according to an article in the FT, the reforms demanded by the EU include:
- the elimination of the VAT exemption for small international packages;
- Updates to the tax rules for digital platforms.
The EU also insists on compliance with commitments already made in the areas of the rule of law and the fight against corruption.
How much funding has Ukraine received so far?
According to the FT, Ukraine received €15.7 billion in 2026 under the relevant support mechanisms. Meanwhile, on October 2, the European Commission announced a new disbursement of €2.9 billion under the Ukraine Facility program and emphasized that the timely implementation of agreed-upon reforms is a prerequisite for further disbursements.
In total, the Ukraine Support Loan provides for up to €90 billion for 2026–2027: €60 billion is to be allocated for defense needs, and €30 billion for budgetary support.
