EU disburses $3.9B to Ukraine for drones, missiles, air defense

The European Commission on Thursday announced a new €3.47 billion ($3.98 billion) disbursement to Ukraine under the defense component of its €90 billion Ukraine Support Loan, aimed at strengthening Kyiv's military capabilities.

The funding will support the procurement of drones, including long-range jet-powered models, missiles, air defense systems, and Gripen fighter jets, according to a statement.

European Commission President Ursula von der Leyen said the latest package would help Ukraine protect its airspace while deepening defense industrial cooperation between Kyiv and the EU.

"Today, we are investing an additional €3.47 billion to help protect Ukraine's skies," von der Leyen said, adding that the initiative reflects the bloc's emerging "Drone Deal," which seeks to combine Europe's industrial capacity with Ukraine's defense innovation.

The EU Commission said the disbursement represents another tranche under the first product schedule for drone procurement and is intended to accelerate the delivery of critical military equipment.

It added that additional funding for drones, ammunition, air defense systems, and missiles is expected to be approved and disbursed in the coming weeks.

The latest payment follows previous support under the same program, including €3.2 billion in macro-financial assistance disbursed on June 25, €3.9 billion under the defense window on June 30, and €1.1 billion on July 15.

The bloc said a total of €28.3 billion is expected to be allocated in 2026 to strengthen Ukraine's defense industrial capacity, with the final allocation due to be completed by September and disbursements continuing through the end of the year.

The Ukraine Support Loan consists of €60 billion dedicated to defense capabilities and industrial production, alongside €30 billion in budget support aimed at maintaining government functions, essential public services, and economic resilience.