Ukraine Support Loan: Ministry of Defence of Ukraine and European Commission discuss control over the use of funds
The Ministry of Defence of Ukraine held a series of meetings during a visit to Ukraine by a joint mission of the European Commission’s Directorate-General for Defence Industry and Space (DG DEFIS) and the European External Action Service (EEAS).
The European delegation was led by Herald Ruijters, Deputy Director-General of DG DEFIS.
The parties discussed mechanisms for verifying and controlling funds under the Ukraine Support Loan, cooperation under the EU–Ukraine Defence Industrial Pact, and the needs of the defence sector.
Defence needs for 2027 and priority areas
Deputy Minister of Defence of Ukraine for European Integration Sergiy Boyev briefed the partners on Ukraine’s defence funding needs for 2027 and the priorities for allocating international support.
Particular emphasis was placed on unmanned systems, whose role on the battlefield continues to grow. Key priorities include supporting the production of Ukrainian FPV drones, as well as middle strike and deep strike capabilities.
Joint production and integration of Ukraine’s defence industry into the EU defence industrial ecosystem
Deputy Minister of Defence of Ukraine Anna Gvozdiar presented the potential of Ukraine’s defence industry and outlined production priorities under the Ukraine Support Loan.
The parties discussed in detail the implementation of the EU–Ukraine Defence Industrial Pact, the Drone Deal initiative, and the establishment of joint ventures.
We are actively cooperating with European partners and are striving for concrete results for both sides. Joint production is the key to strengthening Ukraine’s defence capabilities today and Europe’s security in the future.
The meeting also addressed the further integration of Ukraine’s defence industry into the EU defence industrial ecosystem, the expansion of production cooperation, and the strengthening of long-term partnership.
Transparency and defence procurement reform
Deputy Minister of Defence of Ukraine Mstyslav Banik discussed verification, accountability, and procurement approaches with the EU delegation, with the participation of Artem Romaniukov, Acting Director of the Defence Procurement Agency DOT (DPA), and the DPA team.
The Ministry of Defence’s priorities in this area are:
- improving defence procurement legislation to reflect wartime realities and EU recommendations;
- transitioning procurement to competitive procedures and further shifting tenders to electronic platforms to minimise the human factor.
We see competition growing and the market expanding, and we are saving significant funds. Some tenders have already been successfully completed, and deliveries to the military have begun. In this way, the Ministry of Defence, together with the DPA, is building a simple system with zero tolerance for corruption and shadow schemes, while maintaining openness and transparency with our partners..
For his part, Artem Romaniukov outlined the DPA’s approaches to ensuring transparency and accountability in defence procurement, cooperating with anti-corruption bodies, and using a risk-based approach when vetting counterparties.
It is important for us that international partners have confidence in Ukraine’s defence procurement system. That is why we are strengthening control over every stage of procurement, introducing appropriate tools, and conducting audits so our partners can be sure international support funds are used effectively and transparently.
The Ukrainian side also noted positive momentum in attracting European businesses, as in 2026 European defence companies have already taken part in competitive procurement announced by the DPA.
Funding defence needs through the Ukraine Support Loan
The Ukraine Support Loan is one of the key instruments for financing Ukraine’s defence needs and developing cooperation with European partners.
In total, the loan provides up to €90 billion in support for Ukraine in 2026–2027: nearly €60 billion for defence and another €30 billion for budget support.
Ukraine has already received nearly €16 billion. The latest tranche of €2.86 billion arrived in mid-October.
It is extremely important for Ukraine to remain transparent and accountable to its partners in how it uses these funds. The Ministry of Defence expresses its gratitude to the European Union for its reliable partnership, deeper cooperation, and scaling up of defence production.
