The European Commission has disbursed €3.47 billion to Ukraine under the defence window of the €90 billion Ukraine Support Loan, funding drones, missiles, air defence systems and Gripen fighter jets. The payment, announced on 31 July 2026, responds to Ukraine's urgent military needs as it continues to defend against Russia's war of aggression. Commission President Ursula von der Leyen said the funding helps protect Ukraine's skies and brings European and Ukrainian defence industries closer together, calling it "our new Drone Deal taking shape." Executive Vice-President Henna Virkkunen stressed the delivery of critical air defence systems and missiles, while Defence and Space Commissioner Andrius Kubilius noted the EU's defence industry is increasingly meeting Ukrainian needs.
The disbursement is the latest in a series of payments under the Ukraine Support Loan, which combines €60 billion for defence capabilities and industrial capacity with €30 billion in budget support. It follows earlier tranches: €3.2 billion disbursed on 25 June under the Macro-Financial Assistance (MFA) programme, €3.9 billion on 30 June, and €1.1 billion on 15 July under the defence window. The current payment covers an additional tranche of the first product schedule on drone procurement, including long-range jet-powered drones and missiles. In 2026, the EU plans to disburse €28.3 billion to support Ukraine's defence industrial capacity, with the allocation expected to be finalised by September through product schedules and disbursements running until the end of the year.
The legal basis for this support was set on 23 April 2026, when the Council adopted an Implementing Decision providing up to €45 billion for Ukraine in 2026, split between €16.7 billion in budget support and €28.3 billion for defence industrial capacity. The budget support component is divided equally between a top-up to the Ukraine Facility and a new MFA operation, each worth up to €8.35 billion. Since the start of the war, the EU and its member states have provided more than €220 billion in overall support to Ukraine, including €3.8 billion from the proceeds of immobilised Russian assets.
The disbursement benefits Ukraine's armed forces by accelerating access to equipment that can protect airspace and strengthen defence capacity. For European defence manufacturers, it signals continued demand for drones, missiles and fighter jets, potentially boosting production lines and fostering closer industrial cooperation with Ukrainian firms. The funding also reinforces the EU's security link with Ukraine, as officials repeatedly frame support for Kyiv as an investment in Europe's own defence. However, the scale of disbursement places pressure on EU budgets and on the defence industry to deliver at speed, with the Commission acknowledging that more support for drones, ammunition, air defence and missiles will be approved in the coming weeks. The programme's success depends on timely procurement and the ability of European industry to scale up production to meet Ukraine's urgent needs.