EC prepares ground for a loan to Ukraine and incentives for drone production

The European Commission has begun preparatory steps to implement a €90 billion loan to Ukraine, aimed at providing budget support and accelerating defense procurement in 2026–2027.

The package adopted today includes a proposal for the Council to approve the overall EU support for Ukraine for 2026, which provides for the disbursement of €45 billion by December 31. Following approval, the European Commission will begin the first disbursement to Ukraine.

"We will provide Ukraine with a €90 billion loan. Today, we are taking the necessary preparatory steps to mobilize this year's budget and the procurement of defense equipment, with a particular focus on Ukraine's drone industry," the statement reads, citing EC President Ursula von der Leyen.

The European Commission also adopted a decision allowing Ukraine to use exemptions for drone procurement. This will facilitate preparations for the first urgent defense procurements under this instrument.

As EU Spokesperson Thomas Rainier explained at a briefing, this will allow Ukraine to make urgent purchases for drones outside the EU, Iceland, and Norway if it is unable to purchase from these countries.

Additional product lists for other types of defense products, including missiles and ammunition, will also be approved in the coming months.