EU pays Ukraine 4.36 billion euros for its budget and defence
The European Commission transferred 4.36 billion euros to Ukraine, including 3.7 billion euros in budget assistance and 658 million euros for defence procurement. Ukraine completed 12 policy conditions for the budget instalment. Most of the defence allocation will fund purchases from Ukrainian companies, while further support remains available subject to the programme’s conditions.
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The payment combines budget and defence support
The European Commission transferred 4.36 billion euros to Ukraine on 5 November through the Ukraine Support Loan, the European Union's financing programme. The payment combines 3.7 billion euros in macro-financial assistance with 658 million euros for defence.[1], [2]
The budget payment is the second macro-financial assistance instalment agreed for this year. The defence allocation is the programme's seventh defence payment. Ukraine completed twelve agreed policy conditions before the budget instalment was released; payments depend on satisfactory fulfilment of the relevant reforms.[1]
Ukrainian companies will receive most defence orders
The Commission says the defence allocation will support purchases of drones, missiles, radar, electronic warfare systems and ammunition for Ukrainian air defence. Most of the funding is intended for procurement from Ukrainian companies. The programme supports the development of Ukraine's defence industry and its gradual integration with Europe's industrial base.[1]
Tax reforms unlock the budget instalment
The completed conditions include taxation of income from digital platforms, ending the value-added tax exemption for low-value commercial parcel imports and improving tax compliance. Reforms also cover budget planning, public investment, customs and external audit. The Commission says 25.2 billion euros in further EU support remains available for the rest of the year, with release dependent on the applicable legal conditions.[1]
