Ukraine has received a new major financial tranche from the European Union amounting to €3.8 billion. The funds will be directed exclusively to the defense needs and armed forces of the country.
This was announced by the Prime Minister of Ukraine, Yulia Sviridenko. According to her, the money will become critically important support for the Ukrainian defense industry and the army in the context of the ongoing conflict.
How the funds will be used
According to the head of government, the received funds will be used to finance priority defense needs. In particular, this refers to:
- production of Ukrainian drones;
- strengthening the capabilities of the defense industry;
- ensuring urgent supplies for the needs of the front.
This tranche became the first purely military aid for Ukraine within the framework of a new financial instrument — the Ukraine Support Loan.
Total volume of aid from the EU
Sviridenko noted that on June 25, €3.2 billion in financial aid had already been transferred to the state budget within the framework of this same loan. At that time, the funds were allocated for general budgetary support of the country.
Thus, the total volume of financing that Ukraine has already received under the Ukraine Support Loan instrument has reached €7 billion.
Expectations from the IMF and the World Bank
According to the Prime Minister, by mid-July, a meeting of the Board of Directors of the International Monetary Fund is expected to take place, at which the next tranche for Ukraine will be approved. Its size will be $690 million.
It was also previously reported that Ukraine will receive $3.39 billion from the World Bank. These funds will be directed to support macro-financial stability and finance the state budget.
New inflows from the EU and international organizations will help Kyiv maintain financial stability and continue military operations, despite significant defense expenditures.