EU Loan Covers Two-Thirds of Ukraine’s Needs, Brussels Urges Partners to Step Up as Kyiv Eyes Patriot Purchase

As the European Union disburses its record €90 billion loan to Ukraine, Brussels has acknowledged that the package will cover only two-thirds of the country’s budgetary and defence requirements for 2026–2027 – and is now pressing other allies to fill the remaining gap. Meanwhile, Kyiv has formally requested permission to spend more than €2 billion of the loan’s defence component on Patriot interceptor missiles from the United States, even as it plans to devote most of the funds to Ukrainian and European-made equipment, primarily drones.

“When we put forward the €90 billion loan for Ukraine, the idea was indeed that it covers budgetary and defence needs for 2026–2027, two-thirds of it,” said Paula Pinho, the European Commission’s chief spokesperson, on 1 September. “There is one third which cannot be covered by the EU and where we have been urging our partners to come in and step in.” Source: Ukrainska Pravda

The loan, structured with €30 billion for budget support and €60 billion for defence, has already seen the first disbursements – including about €3.9 billion released in June for drone purchases. Pinho stressed that further releases are tied to reform milestones in Ukraine, calling the disbursement plan “extremely ambitious.”

Kyiv Asks to Spend Loan on US-Made Patriots

According to sources cited by the Ukrainian outlet Suspilne on 1 September, Ukraine has submitted to the European Commission a list of weapons it intends to purchase with the remaining €6 billion in the defence component. “Most of the items concern equipment manufactured in Ukraine and the EU, primarily drones,” Suspilne reported. Yet Kyiv has also asked for permission to allocate over €2 billion specifically for PAC-2 and PAC-3 interceptor missiles for Patriot air defence systems – which can shoot down ballistic missiles – from the United States. Source: Ukrainska Pravda

This request comes amid a shortage of anti-ballistic missiles. President Volodymyr Zelenskyy said in August that although the US pledged monthly deliveries of Patriot interceptors, Ukraine had been receiving roughly three times fewer such missiles since the start of 2026 than needed.

EU Defence Spending Priorities: Drones, IRIS-T, and a New Alliance

Beyond the Patriot request, Ukraine has already moved to buy several thousand IRIS-T missiles from Germany using EU loan funds, a deal confirmed on 8 September. The purchase will significantly bolster Ukraine’s medium-range air defence capacity. Source: Ukrainska Pravda

Next week, the EU and Ukraine will hold the inaugural meeting of the Drone Alliance – a forum meant to accelerate the production and delivery of unmanned systems, which have become central to the war. The exact agenda is not yet public, but the event signals that Brussels and Kyiv are prioritising drones as a cost-effective, scalable tool for both surveillance and strikes. Source: Ukrainska Pravda

What the Loan Does Not Cover – And the Uncertainty Around US Aid

The EU’s admission that the loan leaves a one-third hole underscores a persistent challenge: no binding pledges from partners such as the United States, the United Kingdom, Japan, or Canada to fill the gap have been announced. The European Commission has also not yet calculated the precise size of Ukraine’s overall budget deficit for 2026–2027, saying on 11 September that the assessment remains ongoing. Source: Ukrainska Pravda

Meanwhile, Brussels has downplayed a separate concern: that Washington might demand repayment of earlier military aid. The European Commission said on 4 September that the United States “has not yet made a demand to return money for Ukraine aid,” leaving the door open for continued cooperation. Source: Ukrainska Pravda

Why This Matters

For Ukraine’s defenders, the EU loan is now the primary financial lifeline for the next two years. The fact that Kyiv is asking to divert a portion of it to purchase American missiles – rather than exclusively European kit – highlights the seriousness of its air defence shortages. At the same time, the EU’s desire to keep most spending inside Ukraine and the bloc reflects a long-term strategy to build a domestic defence industrial base less dependent on third countries.

Yet the one-third funding gap remains a risk. If partners do not step in, Ukraine could face tough choices between paying soldiers, buying weapons, and running the state. The upcoming Drone Alliance meeting and the progress of reform-linked disbursements will be closely watched as indicators of whether the EU’s ambitious plan can actually keep Ukraine in the fight.