Ukraine will direct the first tranche of the EU’s €90 billion support package toward domestic weapons production and energy security, President Volodymyr Zelenskyy said on 26 April, outlining how the funds will be used after the bloc’s approval earlier this month.
The European Union approved the €90 billion macro-financial package for Ukraine on 23 April, with the first disbursements expected in May or June following the lifting of political vetoes within the bloc.
Drones and military tech to get first funding
Zelenskyy said the priority for the initial funding will be strengthening Ukraine’s domestic defence industry, particularly drones and broader military technology production.
“The first tranche… we will direct to domestic production for the protection of Ukraine. This is drones and the entire miltech direction,” he said.
Kyiv has been rapidly expanding its domestic arms industry since the start of Russia’s full-scale invasion, with unmanned systems now at the core of its military strategy.
Drones are used across nearly every layer of the battlefield – from frontline reconnaissance and artillery targeting to long-range strikes deep inside Russian territory – offering a scalable, cost-effective way to offset Russia’s advantages in manpower and heavy equipment.
Ukrainian officials increasingly frame drone production not as a supporting capability but as a decisive factor in sustaining combat operations and shaping the course of the war.
Energy grid protection ahead of winter
A second priority will be energy security, with Zelenskyy saying Ukraine must reinforce critical infrastructure ahead of the next heating season.
He said several billion euros from the EU package are expected to be allocated to protecting the energy system, alongside funding from Ukraine’s central budget.
“We need to maximally protect everything we can before the next winter,” he said, noting that the issue had been discussed with European leaders.
Ukraine’s energy infrastructure has faced repeated large-scale Russian attacks since 2022, causing severe damage to generation and transmission capacity, especially in winter months when demand is the highest.
Officials estimate that at least €5.4 billion is needed to secure the energy system for the next heating season, reflecting the scale of war damage and the cost of urgent repairs, equipment, and fuel supplies required for winter stability.
€90B package tied to wider EU support framework
The €90 billion EU package was approved after months of delays caused by internal disputes and vetoes within the bloc, which had held up both financial aid and related decisions on sanctions.
The breakthrough came only after key member states dropped their objections, allowing the long-stalled funding to move forward.
The package is expected to cover a significant share of Ukraine’s budget gap for 2026–2027 and forms a core part of the Western support framework sustaining defence spending and basic state functions during the war.
