The Ukrainian government is set to revise its 2026 state budget to significantly enhance its security and defense sectors, bolstered by a substantial financial package from the European Union. Prime Minister Yulia Svyrydenko announced that the EU has agreed to provide €90 billion in support for the years 2026-2027.
In 2026, Ukraine anticipates receiving €45 billion in international aid, with €31.8 billion allocated specifically for defense and security, while €13.2 billion will address budget deficits. The first tranche of this funding is expected to arrive in June.
Overall, state budget revenues are projected to increase by more than UAH 2.2 trillion, primarily driven by international assistance and domestic revenue generation.
The primary focus of the budget revisions is the enhancement of the defense sector, which will receive an additional UAH 1.56 trillion. Of this amount, UAH 174.3 billion is earmarked for military personnel salaries, UAH 1.37 trillion for the development of armaments and military technology, and UAH 14.6 billion set aside for sectoral reserves.
Funds are also allocated for the development of Ukraine’s defense industry, modernization of equipment, and increased production of armaments.
Additionally, UAH 40 billion is designated for implementing comprehensive regional and community resilience plans, including preparations for the autumn-winter period and protection of critical infrastructure. Another UAH 40 billion will go into a reserve fund for rapid response to wartime challenges.
On April 29, Ursula von der Leyen, President of the European Commission, confirmed that the EU would disburse the first tranche of financial aid to Ukraine in the second quarter of 2026.
She noted that the EU had previously committed to a €90 billion loan to Ukraine, and the implementation of this plan is now underway. The first installment of €45 billion for 2026 is expected to be released this quarter.
In December 2025, EU leaders approved the €90 billion support package for Ukraine for 2026-2027. This loan will be backed by the EU’s budget reserves rather than frozen Russian assets.
On January 14, 2026, the European Commission adopted a legislative proposal to facilitate this loan, aimed at covering Ukraine’s financial and military needs over the next two years.
On January 21, the European Parliament endorsed a proposal allowing for enhanced cooperation to establish the ‘Loan for Ukraine’ program, set to provide €90 billion over the two-year period.
On February 11, Members of the European Parliament voted in favor of three legislative acts enabling the loan to Ukraine.
However, on February 20, Hungary obstructed the disbursement of the €90 billion EU loan, citing a lack of oil transit from Russia via the Druzhba pipeline.
The Ukrainian Foreign Ministry stated that Kyiv had informed Budapest about Russian attacks on the Druzhba pipeline in Brody, Lviv region, and deemed Hungary’s accusations of delays in supplies as illogical.
In response, Hungarian Foreign Minister Peter Szijjarto claimed during an EU Council meeting on February 23 that Russia had not attacked the pipeline infrastructure, alleging that Ukraine had halted transit due to internal political decisions. The Ukrainian Foreign Ministry accused the Hungarian minister of making statements and actions favoring Russia.
On February 23, European Commissioner Valdis Dombrovskis informed the media that the EU was not considering alternative options regarding the €90 billion loan to Ukraine, which Hungary continues to block.
The EU leaders’ summit took place on March 19 in Brussels, where prior to the meeting, the Hungarian Prime Minister stated that Budapest would not support any EU decisions favoring Ukraine until Kyiv restored oil transit through the Druzhba pipeline, including the unblocking of the €90 billion loan.
On April 22, EU ambassadors initiated a written procedure to approve the €90 billion loan for Ukraine and the 20th package of sanctions against Russia. The following day, President of the Euro Council Antonio Costa confirmed the unblocking of this loan for Kyiv for 2026-2027 and the adoption of anti-Russian restrictions.
The Ukrainian government is revising its 2026 budget to enhance defense funding, supported by a €90 billion EU financial package. This initiative aims to strengthen military capabilities and address budget deficits amid ongoing challenges.