The European Commission (EC) announced on Wednesday "preparatory steps" to provide financial support to Ukraine and increase drone production.

“We will deliver on the EUR 90 billion loan to Ukraine. Today, we are taking the necessary preparatory steps to mobilise this year’s budget and procure defence equipment, with a focus on Ukraine’s cutting-edge drone industry. With this we send a clear message: the Commission stands ready to move forward,” the EC Chairman von der Leyen said.

The European Commission’s communiqué explains that the adopted package includes a proposal for the EU Council to approve the overall volume of EU support to Ukraine for 2026, as well as a decision confirming the use of exemptions for the first procurement schedule for defence products (...), which will focus on drones.

The Commission proposes to allocate a total of EUR 45 billion to Ukraine by December 31, 2026. The remaining part of the 90 billion loan is expected next year.

Following the Council’s approval of the proposal, the Commission will proceed as soon as possible with the first tranche for Ukraine, which will supplement contributions from international donors and will take into account Ukraine’s external financing gap and its defense needs.

The communiqué notes that this proposal defines the distribution of funds between defense procurement and budget support: “Budget support will reach up to EUR 16.7 billion, split equally between the Ukraine Facility and Macro-Financial Assistance, while support to Ukraine’s defence industrial capacities will amount to EUR 28.3 billion.”

“The budgetary support will be underpinned with strong conditions related to the rule of law, fight against corruption, economic resilience and sustainability,” they say in Brussels.