Ukraine to receive first "military" tranche from €90bn EU loan as early as June

Ukraine will receive the first tranche of €6 billion from the military component of the European Union's €90 billion loan no later than June.

Source: European Pravda

Details: European Pravda has learnt that the exact date for the transfer of the first funds is not yet known, as several procedures must still be completed beforehand.

First of all, Ukraine must open a special bank account in the EU, specifically at Deutsche Bundesbank.

This procedure normally takes several months, but Ukraine and Germany have agreed to accelerate it. In addition, Kyiv must grant the EU monitoring rights over spending from the specified account.

The EU has also indicated that Kyiv can already conclude contracts for the supply of weapons and pay for them later using loan funds, as the loan terms enable financing of military orders placed since January this year.

The first defence tranche will be allocated for the purchase of drones produced in Ukraine. The schedule for subsequent payments from the "military" component of the loan has not yet been approved, but they are expected to be disbursed more quickly. European Pravda reports that the next package may include ammunition, drones and air defence systems.

There are no conditions attached to receiving the defence funds, unlike the "financial" component of the EU loan.

Background: On 23 April, the Council of the EU approved amendments to the EU's long-term budget for 2021-2027 by written procedure, enabling the provision of the €90 billion loan to Ukraine in 2026-2027.

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