EU Sends Ukraine $4.9 Billion for Budget and Defense

The European Commission disbursed €4.36 billion ($4.9 billion) to Ukraine on Thursday, Nov. 5, to help fund public services and buy military equipment as Kyiv prepares for its fifth winter since Russia’s full-scale invasion.Of that sum, €3.7 billion ($4.2 billion) went to the state budget after Ukraine met all 12 policy conditions, the Commission said. The remaining €658 million ($739 million) was the seventh defense payment under the EU’s €90 billion Ukraine Support Loan.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official.Commission President Ursula von der Leyen said the money would help Ukraine keep essential public services running.“As Russia continues its relentless attacks, Ukraine is about to start its fifth wartime winter,” she said.Tax reforms unlock budget supportThursday’s budget payment was the second of three macro-financial assistance installments scheduled for 2026, worth €8.35 billion in total. Kyiv received the first €3.2 billion installment on June 25. Each payment depends on reforms agreed with the EU.The conditions included adopting legislation to tax income earned through digital platforms, ending the value-added tax exemption for low-value commercial imports sent by parcel, and improving tax compliance. Ukraine also advanced reforms in budget planning, public investment management, customs and external audit.Ukrainian defense companies to supply most of the equipmentThe €658 million defense payment will fund purchases of drones, missiles, radar, electronic warfare systems and air defense ammunition. The Commission said it would spend most of the money on equipment from Ukrainian companies. The payment brings total defense funding disbursed under the loan to €16.4 billion. Other Topics of Interest Russia’s Black Sea Blockade Hits Small Farmers Hardest, PrivatBank Says PrivatBank says small farmers are most exposed to Russia’s Black Sea blockade, while larger agribusinesses rely on reserves and oilseed processing. What remains available in 2026A further €25.2 billion ($28.3 billion) in EU support remains available this year if Ukraine meets the conditions for release. Of that, about €20.9 billion is available under the loan, including €11.9 billion for defense production and €9 billion for the budget. Almost €4.4 billion in additional budget support is available through the Ukraine Facility.The European Parliament and the Council of the EU established the loan in February. On April 23, the Council allocated up to €45 billion for 2026, including €28.3 billion for defense production and €16.7 billion for the budget. The budget allocation is split equally between macro-financial assistance and a top-up to the Ukraine Facility.The first €800 million from that top-up reached Ukraine on Oct. 2 as part of a €2.9 billion payment under the Ukraine Plan.The EU and its member states have provided €235.9 billion in overall support to Ukraine since Russia’s full-scale invasion, according to the Commission. That includes €3.8 billion from the proceeds of immobilized Russian assets. Kyiv Post is Ukraine’s first and oldest English news organization, reporting since 1995. Its international reach – 90% of readers are outside of Ukraine – make it truly Ukraine’s global voice.