Business news from Ukraine

Business news from Ukraine

European Union did not support Ukraine’s request for early disbursement of additional funding

3 October , 2026  

The European Union did not support Ukraine’s request for early disbursement of additional funding in 2026 and emphasized that the allocation of funds will depend directly on Kyiv’s implementation of agreed-upon reforms, according to the Financial Times, citing a letter from European Commissioners Valdis Dombrovskis and Marta Kos to Verkhovna Rada Chairman Ruslan Stefanchuk.

This summer, Ukraine estimated its additional defense needs at approximately $27 billion and approached the European Commission with a proposal to advance a portion of the funds from the two-year €90 billion Ukraine Support Loan program (€60 billion earmarked for defense, €30 billion for direct budget support). According to the program’s terms, up to €45 billion is to be made available to Ukraine in 2026, with the remaining €45 billion to follow in 2027.

According to the FT, European Commissioners have made it clear that access to funding is contingent upon fulfilling an agreed-upon list of commitments. Specifically, this involves the elimination of VAT exemptions for small international parcels, the introduction of taxation rules for digital platforms, and proper financial monitoring of politically exposed persons (PEPs)—changes to which have raised concerns in Brussels as a deviation from the anti-corruption agenda. According to the publication’s assessment, meeting these requirements will pave the way for Kyiv to receive approximately 34 billion euros in support as early as 2026.

At the same time, the European Commission emphasized that the rejection of the request for an early advance payment does not mean a curtailment of financial assistance. On October 1, the parties announced that they had agreed on sources of funding for budgetary and defense needs through the end of 2026, noting that there is no unfunded financial gap for the current year.
In addition, on October 2, the European Commission transferred another tranche of 2.9 billion euros to Ukraine as part of the Ukraine Facility program. The total amount of aid to Kyiv from the EU and its member states since the start of Russia’s full-scale invasion has reached 227.4 billion euros.

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