Kyiv, 2 October, (Brussels Morning Newspaper) – Ukraine has received another €2.9 billion from the European Union through the Ukraine Facility, providing fresh financial support to Kyiv after the country completed reform targets linked to the latest payment. Ukraine’s government confirmed the transfer on Friday, saying the money was particularly important as the country faces continued pressure on public finances.
EU releases major €2.9bn payment to Ukraine
The latest transfer represents the eighth regular disbursement under the EU financing programme for Ukraine.
The Council of the European Union approved the payment on 24 September after determining that Ukraine had successfully completed ten target steps required under its reform programme. At that point, Kyiv had fulfilled 84 of 95 target steps that had fallen due, equivalent to approximately 88%.
Ukraine’s government said the ten indicators linked to the latest financing covered the banking sector, energy, agricultural policy, transport and other areas. Three were completed ahead of schedule.
The payment comes after the European Commission said on 28 September that it intended to disburse another €2.9 billion shortly.
Ukrainian government highlights financial pressure
Ukrainian Prime Minister Sergii Koretskyi said the financing was critical to maintaining the resilience of the state and covering essential expenditure.
“In the context of a difficult financial situation, these funds are critically important for the resilience of the state, ensuring key expenditures and the ability to direct more of our own resources to defence,” Koretskyi said in a government statement.
He added that Ukraine’s financing requirements remained critical and said the government was accelerating decisions while working with parliament to pass legislation required for further reforms.
How the Ukraine Facility supports Kyiv
The Ukraine Facility entered into force in March 2024 as the EU’s principal long-term financial instrument supporting Ukraine’s recovery, reconstruction and modernisation.
The original programme provides more than €50 billion in grants and loans for the 2024–2027 period. More than €38 billion was indicatively earmarked for reforms and investments contained in the Ukraine Plan, with payments linked to Kyiv meeting specified conditions.
In June 2026, the European Commission released the seventh regular payment of nearly €2.8 billion. That brought EU support provided under the Ukraine Plan at the time to €29.5 billion.
The Council subsequently amended the plan in July to reflect an additional €8.3 billion in financing for 2026 through the Ukraine Support Loan.
Why the latest EU payment matters
The new funding provides Ukraine with additional resources to maintain macro-financial stability, finance essential government expenditure and continue reforms while the war places exceptional pressure on state finances.
For Brussels, the payment also illustrates the EU’s performance-based approach to financial assistance. Funding is released as Ukraine implements agreed measures rather than solely according to a fixed timetable.
The Council said the programme is intended to support Ukraine’s financial stability, recovery and modernisation while keeping public administration functioning and advancing reforms.
What happens next?
Ukraine must continue meeting the reform and investment requirements set out in its plan to unlock subsequent Ukraine Facility payments.
Kyiv says it is working with parliament to accelerate the legislation and government decisions needed to fulfil its remaining commitments. Future payments will remain linked to assessments of Ukraine’s progress against the conditions agreed with the EU.
