The European Commission has released an additional 3.47 billion euros ($3.99 billion) to support Ukraine’s defense efforts, the latest disbursement under the 90 billion euro Ukraine Support Loan, the Commission announced on Friday.
The funding covers further drone procurement, long-range drones including jet-powered variants, missiles and Gripen fighter jets, according to the announcement. The Commission also indicated that further support for drones, ammunition, air defense and missiles is set to be approved and released in the coming weeks.
“With this new disbursement under our €90 billion loan package, we are helping Ukraine defend its people,” European Commission President Ursula von der Leyen said. “We are also bringing our defence industries closer together, combining Europe’s industrial scale with Ukraine’s unmatched innovation. This is our new Drone Deal taking shape. And let this new support send a clear message: every Russian strike strengthens Ukraine’s determination to be free and our determination to stand with Ukraine, for as long as it takes.”
The latest payment follows earlier allocations under the same support umbrella. On June 25, the Commission provided 3.2 billion euros under its dedicated Macro-Financial Assistance (MFA) instrument, followed by payments of 3.9 billion euros on June 30 and 1.1 billion euros on July 15 from the loan’s defense window.
For 2026, 28.3 billion euros is set aside specifically to back Ukraine’s defense industrial capacity, with the exact allocation to be finalized by September. The 90 billion euro Ukraine Support Loan consists of 60 billion euros earmarked for boosting Ukraine’s defense capabilities and industrial base, and 30 billion euros reserved for maintaining Ukrainian state functions and economic stability.
After Ukraine outlined its financing strategy in March, the EU Council approved up to 45 billion euros in support for the year, combining 16.7 billion euros in budget backing and 28.3 billion euros for defense industrial support. The budget component includes equal shares for a Ukraine Facility top-up and a new MFA operation, worth up to 8.35 billion euros each. The first MFA disbursement of 3.2 billion euros was made in late June.
The EU and its member states have, since the beginning of Russia’s full-scale invasion, supplied more than 220 billion euros in total support to Ukraine, which includes funds raised from immobilised Russian assets. In May, Ukraine’s parliament ratified the memorandum of understanding and the agreement with the EU on the 90 billion euro ($104 billion) Ukraine Support Loan.
The disbursement advances what von der Leyen has called the EU’s “Drone Deal,” part of a broader push to expand European defense production alongside Ukraine’s own manufacturing base. Kyiv has urged partners to co-finance drone and missile production as it seeks to sustain long-range strikes on Russian military infrastructure, including refineries and logistics hubs hit in recent weeks.
The Gripen component is also significant: the Swedish-made Saab fighter has long been on Kyiv’s wish list, and European allies have discussed supplying the jets as part of a coalition of nations supporting Ukraine’s air force. The loan’s defense window is designed to let Ukraine procure equipment directly from European industry rather than depend solely on donations from national stockpiles.
Sources: Airforce Technology, Army Technology, European Commission.
Author: Ukraine Desk
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