€90bn EU loan to Ukraine: first tranche to fund drone production

Andrius Kubilius, European Commissioner for Defence and Space, has said that the first tranche of military aid to Ukraine under a €90 billion EU loan will be used to procure Ukrainian-made drones.

Kubilius said that Ukraine has requested defence assistance totalling €28.3 billion for 2026, adding that the first supply plan will focus on drones produced by Ukraine's advanced defence industry.

He also noted that the EU expects greater involvement of the European defence industry in subsequent supply plans.

The European Commission expects the first tranche of the €90 billion package for Ukraine to be disbursed in the second quarter of 2026.

Following the defeat of Hungary's ruling party in the 12 April elections, the EU hopes to swiftly unblock both the €90 billion loan for Ukraine and the 20th sanctions package against Russia.

The European Commission has proposed allocating €45 billion to Ukraine in 2026, including €16.7 billion for budgetary needs and €28.3 billion for the military, defence and weapons production.