SUP continuously monitors Ukraine’s European integration process and the mobilization of international assistance that is expected to become a cornerstone of the country’s economic recovery.
On May 28, 2026, the President of Ukraine submitted Draft Law No. 0376 to the Verkhovna Rada, providing for the ratification of an unprecedented EU financial assistance package (loan facility) for 2026–2027 totaling €90 billion. The support is considered critical for maintaining macro-financial stability and strengthening Ukraine’s defense capabilities. On the same day, the Verkhovna Rada adopted the law.
Where the Funds Will Go in 2026
The total volume of support planned for 2026 alone amounts to €45 billion, which will be allocated across two key areas:
- Defense Capability (€28.3 billion)
A substantial share of the funding will be directed toward the procurement of military equipment and the strengthening of Ukraine’s defense-industrial base, including the development of domestic production capacities.
For businesses operating in the defense sector, this creates new opportunities for contracts, investment, and technological advancement.
- Macro-Financial Stability (€16.7 billion)
Half of these funds (€8.35 billion) will be provided through the EU’s Macro-Financial Assistance program, while the remaining half will be disbursed through the Ukraine Facility instrument.
The schedule and conditions for the disbursement of funds are outlined in the Memorandum of Understanding between Ukraine and the European Union.
A Loan That Will Not Become a Burden
Legally, the assistance is structured as a concessional loan with a maturity of up to 35 years and an interest rate of approximately 2% per annum.
Interest payments will be fully covered by the EU budget until reparations are received. Repayment of the principal will be financed exclusively through future reparations from the Russian Federation.
As a result, the implementation of the loan agreement is not expected to create an immediate debt burden on Ukraine’s public finances.
What Does This Mean for Business?
The release of funds is directly linked to Ukraine’s fulfillment of commitments set out in the Memorandum of Understanding. For businesses, this means a number of regulatory changes.
- Tax Reforms and Revenue Mobilization
- Abolition of tax exemptions for international parcels and the introduction of taxation of income earned through digital platforms (Conditions 1.1 and 1.2).
- Extension of the 5% military levy for an additional three years, generating at least UAH 140 billion in annual revenues (Condition 1.3).
- Reform of the simplified taxation system aimed at generating an additional UAH 70 billion per year, including measures against artificial business fragmentation and the introduction of differentiated tax rates for Group 3 taxpayers (Condition 3.1).
- Simplification of VAT administration, including a transition to quarterly reporting and streamlined procedures for unblocking VAT invoices (Condition 3.2).
2. Customs and Public Procurement
- Adoption of a new Customs Code fully aligned with the EU Customs Code (Conditions 1.6 and 3.12).
- Development of a new Public Procurement Strategy for 2027–2030 and preparation of a legislative framework for defense procurement in line with EU standards (Conditions 3.7 and 3.8).