Up to €45 billion in 2026: what conditions Ukraine must meet to receive EU funding

The Ukrainian government plans to adopt the necessary decisions by November 1 to fulfill its commitments to the European Union under the Ukraine Plan and the new macro-financial assistance mechanism in order to receive grants. Prime Minister of Ukraine Serhii Koretskyi reported this on September 7, UNN reports. 

Ukraine’s access to billions of euros in budget support depends on the timely implementation of reforms, while the EU’s total loan package for 2026–2027 amounts to €90 billion. Separately, according to President Volodymyr Zelenskyy, approximately $15 billion in partner financing depends on 44 government decisions, while another approximately $15 billion is linked to decisions by the Verkhovna Rada. 

Details

Head of the Ukrainian government Serhii Koretskyi  said that on September 7 he discussed financial support for Ukraine in 2026–2027 with Valdis Dombrovskis, the European Commissioner for Economy and Productivity. According to the head of the Cabinet of Ministers, his subordinates are working to fulfill the commitments stipulated by the Ukraine Plan and the Memorandum of Understanding on macro-financial assistance.

"We expect to make full use of the financial resources provided for by the relevant instruments. We plan to adopt the necessary government decisions by November 1. At the same time, we are working with the Verkhovna Rada to adopt the necessary legislative acts," Koretskyi said. 

What sums are involved

One of the key sources of financing for Ukraine over the next two years is the Ukraine Support Loan. The EU has approved a €90 billion loan for Ukraine for 2026–2027. Approximately €60 billion of this amount is to be allocated for military and defense-industrial support, while about €30 billion will go toward general budget assistance. 

For 2026, Ukraine has been granted access to financing of up to €45 billion. Of this amount, €28.3 billion is intended to support defense-industrial capabilities, while another €16.7 billion is intended to support the state budget. 

The budgetary €16.7 billion, in turn, is divided into two parts: up to €8.35 billion is to be provided as macro-financial assistance, and another up to €8.35 billion through the Ukraine Facility mechanism. 

The €8.35 billion in macro-financial assistance is to be paid in three installments: €3.2 billion, €3.7 billion, and €1.45 billion. The first tranche of €3.2 billion was transferred to Ukraine by the European Commission on June 25. 

At the same time, these funds do not arrive in Ukraine automatically. Before making subsequent payments, the European Commission assesses the implementation of the agreed reforms and other conditions.

What Ukraine must do to receive the money

The Memorandum of Understanding between Ukraine and the EU sets out a specific list of legislative and government decisions.

In particular, this concerns changes to tax policy. Ukraine has undertaken to regulate the taxation of income received through digital platforms, as well as to abolish the tax exemption for imported parcels, except for goods intended for security and defense needs. The commitments also include bringing corporate taxation closer to EU rules on combating tax evasion. 

A separate section concerns reforming the property valuation system, improving VAT administration, and increasing the level of compliance with tax legislation. 

In the area of public finances, the government must, among other things, develop a new public investment management system and integrate related information systems with DREAM, Prozorro, the state budget, and the Treasury system.

The Cabinet of Ministers must also approve the Budget Declaration for 2027–2029. It must contain calculations of revenues, expenditures, the deficit, and public debt consistent with the fiscal targets agreed with the IMF. Reviews of public expenditures are also planned, with the aim of identifying opportunities for their optimization. 

Other conditions include further reform of the customs system and bringing Ukrainian customs legislation closer to the EU Customs Code, digitizing the State Customs Service, and strengthening the institutions of state financial control.

For the next stage of financing, the Memorandum also provides for the preparation of amendments to the simplified taxation system. The reform should include combating the artificial splitting of businesses, changes to the rules for remaining in the simplified system, and other tax measures. The expected additional fiscal effect is set at at least UAH 70 billion per year. 

In addition, Ukraine must prepare long-term estimates of future pension system expenditures, taking into account the planned pension reform. 

Anti-corruption reforms — a separate condition

The financing is also directly linked to Ukraine’s adherence to the principles of the rule of law, effective democratic mechanisms, and the fight against corruption.

The Memorandum also provides for no "backsliding" from the anti-corruption measures that Ukraine previously introduced במסגרת EU or International Monetary Fund programs. 

What will happen if the conditions are not met

Before each disbursement, the Ukrainian side must provide the European Commission with documents confirming that the relevant conditions have been met. The Commission then conducts an assessment and, if necessary, may request additional evidence. In the event of a negative assessment, the European Commission has the right to delay the corresponding payment. Thus, failure to meet individual conditions does not mean the automatic loss of the entire €90 billion package, but it may result in delays or the failure to receive specific tranches. 

At the same time, the Ukraine Facility is in effect — a separate EU mechanism for 2024–2027, with disbursements also linked to the implementation of the reforms provided for in the Ukraine Plan. In July, the EU revised this plan and added new reform steps, particularly in the areas of the rule of law and the fight against corruption. Additional financing through the Ukraine Facility in 2026 amounts to more than €8 billion. 

Around $30 billion depends on decisions by the Cabinet of Ministers and Parliament — Zelenskyy

As early as September 1, Ukrainian President Volodymyr Zelenskyy stated that a significant amount of external financing depended on Ukraine’s fulfillment of its agreements with international partners. According to him, the government needed to adopt 44 decisions that would unlock around $15 billion in partner support.

"One part is the government’s decisions — 44 decisions are needed, and this will be $15 billion. Everything is quite specific; the government will ensure that these decisions are adopted by November 1," the president said. 

According to Zelenskyy, another approximately $15 billion depends on the work of the Verkhovna Rada and the adoption of the necessary laws.

At the same time, these approximately $30 billion in partner financing should not be directly equated with the €30 billion budget component of the Ukraine Support Loan. This refers to a broader set of agreements between Ukraine and its international partners, including the EU, the IMF, and other creditors.

Ukraine and the EU will coordinate needs for 2027

During the conversation, Koretskyi and Dombrovskis also agreed to strengthen cooperation between Ukrainian ministries and the European Commission’s directorates-general, as well as coordination with the IMF and other international partners. According to the prime minister, it is important for Ukraine and its partners to develop a coordinated assessment of the country’s budgetary and defense needs for 2026–2027.

Separately, the head of government raised the issue of strengthening sanctions pressure on Russia, monitoring compliance with the restrictions, and countering their circumvention. He also emphasized that Ukraine’s accession to the EU remains an unconditional priority, and that Kyiv expects the remaining negotiating clusters to be opened as soon as possible. 

Previously

At the end of July 2026, the Council of the EU approved amendments to the Ukraine Plan, adding €8.3 billion in loans for 2026. The reforms provide for strengthening the rule of law and the fight against corruption.