EU’s €90 Billion Loan Paves Way for Major Boost to Ukraine’s Defense Budget

Ukraine’s 2026 Budget Gets a Major Overhaul

According to Главком: Ukraine’s government has drafted amendments to the 2026 state budget, with a strong focus on strengthening national security and defense. This became possible after the European Union approved a €90 billion loan package covering 2026–2027. This year alone, EU support is expected to total €45 billion, allocated as follows:

• €31.8 billion for defense and security;
• €13.2 billion to cover the budget deficit.

The first tranche of funds is anticipated in June.

Security and Defense Sector Funding

Under the revised plan, state budget revenues will increase by over UAH 2.2 trillion, with UAH 1.56 trillion of that amount earmarked for the security and defense sector. Prime Minister Yulia Svyrydenko outlined the breakdown:

'an additional UAH 1.56 trillion for the security and defense sector. Of this: UAH 174.3 billion for military personnel salaries; UAH 1.37 trillion for the development of weapons and military equipment; UAH 14.6 billion as a reserve for the security and defense sector.' Yulia Svyrydenko

Furthermore, UAH 40 billion will be allocated to implement comprehensive resilience plans for regions and communities. This includes preparations for the autumn-winter period, protecting the energy sector, and ensuring the stable operation of critical infrastructure. Another UAH 40 billion will be added to the reserve fund for rapid response to wartime challenges.

In December 2025, Ukraine’s president signed the 2026 state budget into law. The primary sources for these amendments are Prime Minister Yulia Svyrydenko and the news outlet 'Glavcom'.

These budget revisions highlight the Ukrainian government’s priorities amid ongoing military aggression and the urgent need to ensure national security. The EU’s financial backing underscores the critical role of international support for Ukraine during this difficult period. The increased spending on defense, security, and regional support reflects the government’s drive to maintain stability and protect vital infrastructure in the face of current challenges.