The Cabinet of Ministers of Ukraine has approved the procedure for using European Union funds raised under the special Ukraine Support Loan to strengthen the country’s defense-industrial potential in 2026–2027. The funding will be used to provide the Ukrainian army with weapons, military vehicles, and necessary equipment. Ukrainian Prime Minister Yulia Svyrydenko announced this, as reported by Dengi.ua with reference to the official portal of the Cabinet of Ministers.
The funds will be used to arm and support Ukraine’s defense industry
According to the head of government, European funding will make it possible not only to purchase imported weapons but also to directly pay for contracts with Ukrainian defense industry enterprises.
“This will allow us to use the funds raised from the EU to purchase weapons, military vehicles, and equipment for the needs of the Ukrainian army,” noted Yulia Svyrydenko.
Procurements will be carried out through international organizations
Some of the procurements are planned to be carried out with the involvement of international organizations and in accordance with their procedures. This mechanism should expedite the delivery of both individual components and finished weapons systems to the Ukrainian Armed Forces.
In addition, the use of these funds will be accompanied by monitoring, oversight, auditing, and reporting in accordance with European Union requirements.
“Monitoring, oversight, auditing, and reporting will be implemented in accordance with European Union requirements, which will ensure the transparent and most effective use of the funds raised,” the Prime Minister emphasized.
What the Ukraine Support Loan Program Entails
The agreement on the Ukraine Support Loan was signed and ratified in late May. The total volume of the European Union’s loan facility amounts to up to 90 billion euros and is scheduled for the years 2026–2027.
Of this amount, 60 billion euros are earmarked to support Ukraine’s defense needs. Already this year, the country expects to receive 28.3 billion euros in defense funding under the Ukraine Support Loan program.
