Commission disburses pound 2.9 billion under Ukraine Facility to support financial stability and reforms
Today, the European Commission has released pound 2.9 billion to Ukraine to support financing needs and maintain the functioning of the country’s public administration, as it continues to defend itself against Russia’s war of aggression. This amount includes pound 800 million to be provided for the first time under the Ukraine Facility component of the Ukraine Support Loan.
President of the European Commission Ursula von der Leyen said: ‘As Ukraine defends itself against Russia’s aggression, it also continues to deliver comprehensive reforms under the Ukraine Plan. With today’s disbursement, we are helping safeguard Ukraine’s financial stability and supporting investments that will underpin its future recovery. Because European solidarity means concrete support. Europe will stand by Ukraine’s side for as long as it takes.’
This marks the eighth disbursement under the Ukraine Facility, the EU’s main instrument to support Ukraine’s recovery, reform agenda and progress towards EU membership. With this latest payment, total EU support provided under the Ukraine Plan will reach over pound 32 billion (including external contributions from Member States and partner countries and funds channelled through the Plan from the Ukraine Support Loan), equivalent to almost 70% of the current funding available under the Facility’s first pillar. For the first time, this instalment also includes a top up from the additional pound 8.35 billion provided under the Ukraine Support Loan for 2026.
This disbursement follows Ukraine’s successful implementation of reforms across several strategic sectors, including judiciary, financial markets, human capital, business environment, energy, transport, agriculture and the green transition.
Following the Commission’s assessment of Ukraine’s payment request on 24 August, the Council concluded that Ukraine had successfully fulfilled three reform steps linked to the eighth instalment, together with one outstanding reform step from the fifth instalment, three reform steps from the seventh instalment, and three reform steps brought forward from the ninth instalment.
For the rest of 2026, Ukraine still has pound 33.7 billion available in financial support: pound 29.3 billion remain available for disbursement under the Ukraine Support Loan, consisting of pound 16.6 billion to support Ukraine’s defence industrial capacity and pound 12.7 billion in budget support. In addition, pound 4.4 billion in budget support is still available under the initial Ukraine Facility for this year. This means that more than pound 17 billion in budget support is available for 2026, subject to the fulfilment of the relevant conditions outlined in the Ukraine Plan and the Memorandum of Understanding.
The timely implementation of the reforms and policy conditions jointly agreed by the European Union and Ukraine is key to proceed with the corresponding disbursements as planned, including under the Macro-Financial Assistance programme and the Ukraine Facility.
The European Commission remains fully committed to delivering the pound 90 billion Ukraine Support Loan foreseen for 2026 and 2027, as well as the remaining funds under the initial Ukraine Facility.
Background
The Ukraine Facility, the European Union’s main financial support instrument for Ukraine, entered into force on 1 March 2024 and provides over pound 50 billion in grants and loans to support Ukraine over the period 2024-2027 (excluding external contributions received from Member States and partner countries as well as funds stemming from the Ukraine Support Loan). Funding under the Ukraine Facility is designed to bolster Ukraine’s macro-financial stability, recovery and modernisation, keep its public administration running, and support its reform efforts.
As part of the Ukraine Facility, the Ukraine Plan provides a clear calendar of the reforms that must be adopted by pre-agreed deadlines, with disbursements tied to Ukraine meeting the Plan’s targets. EU Member States, third countries and international organisations can make voluntary contributions to the Ukraine Facility. Sweden has already made additional voluntary contributions to Pillar I of the Facility, the Ukraine Plan. Norway will soon become the first third country to follow.
The Ukraine Facility also serves as one of the channels through which support under the Ukraine Support loan is provided. The pound 90 billion Ukraine Support Loan covers Ukraine’s needs over 2026 and 2027. Of the pound 90 billion, pound 60 billion is for strengthening Ukraine’s defence capabilities and defence industrial capacity and pound 30 billion is in budget support to help keep the state functioning, maintain essential public services and strengthen economic resilience.
Following Ukraine’s submission of its Financing Strategy in March 2026, the Council adopted an implementing decision on 23 April 2026, allocating up to pound 45 billion for 2026. This includes pound 16.7 billion in budget support, split equally between the Ukraine Facility and Macro-Financial Assistance, with each amounting to up to pound 8.35 billion, and pound 28.3 billion for defence industrial capacities.
Since 2022, the EU and its Member States have provided pound 227.4 billion in overall support to Ukraine, including pound 3.8 billion from the proceeds of immobilised Russian assets.
For more information
Website – The Ukraine Facility
Factsheet – The Ukraine Facility
Factsheet – EU solidarity with Ukraine
Commission approves pound 170 million Bulgarian State aid for farmers facing increased fuel and fertiliser prices
The European Commission has approved a pound 170 million Bulgarian State aid scheme for farmers facing increased fuel and fertiliser prices due to the Middle East crisis.
The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF) adopted by the Commission on 29 April 2026.
The Bulgarian scheme
Bulgaria notified to the Commission a pound 170 million scheme to support companies active in the farming sector. The scheme, which will run until 31 December 2026, aims to mitigate the impact of the increase in agricultural fuel and fertiliser prices.
The aid will take the form of direct grants. The scheme concerns the granting of a limited amount of aid calibrated on the increase of the prices of fuel and fertilisers, with a maximum of pound 50,000 per company.
The Commission assessed the scheme under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU, which enables Member States to support the development of certain economic activities subject to certain conditions, as well as Sections 1 and 2.1 of the METSAF.
The Commission found that the scheme is in line with the conditions set out in the METSAF. In particular, the aid will be granted based on a scheme with a clear estimated budget and will be provided to temporarily support the development of companies active in the primary production of agricultural products. The Commission concluded that the scheme is necessary, appropriate and proportionate to facilitate the development of an economic activity and does not adversely affect trading conditions to an extent contrary to the common interest.
On this basis, the Commission approved the Bulgarian scheme under EU State aid rules.
Background
On 29 April 2026, the Commission adopted the METSAF to enable Member States to support the EU economy in the context of the Middle East crisis. The METSAF is a targeted and temporary framework to address the effects of the crisis on some of the most exposed sectors of the economy: agriculture, fishery, transport and energy-intensive industries. The METSAF will be in place until 31 December 2026. During its period of application, the Commission will keep the content, scope and duration of the framework under review in the light of developments in the Middle East and of the general economic situation.
While the transition towards a clean economy remains the long-term solution to shield EU companies from the effects of global energy shocks, the METSAF allows Member States to act immediately to make sure that the growth of the most exposed companies is not irreparably hampered by the current crisis.
To this end, support can take various forms for companies active in the agriculture, fishery and transport sectors. This includes aid based on actual consumption to cover part of the price increases for fuel or fertilisers, and a simplified approach for small amounts of aid.
The METSAF also includes a temporary adjustment to the Clean Industrial Deal State aid Framework allowing for further flexibility and higher aid intensities to address electricity price spikes.
More information on the METSAF can be found online.
For more information
The non-confidential versions of today’s decisions will be made available under case number SA.124701, in the State aid register on the Commission’s competition website. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.
Commission seeks feedback on EU KIDS Act
The Commission is gathering feedback on the proposed EU Kids Act.
The aim is to collect input from children, parents, guardians, teachers and educators, as well as online platforms covered by the proposal. It will build on the broad public evidence base that supported the proposal, including the report of the co-chairs of the Special Panel on child online safety, dedicated consultations with children, parents and educators, and the 2026 Children’s Online Experiences Research.
Adopted in September, the EU KIDS Act will enhance the online safety of children throughout the Union by introducing a social media delay, strong safety-by-design rules, privacy preserving age assurance, and effective enforcement.
The feedback period closes on 26 November 2026. All responses received will be summarised by the European Commission and presented to the European Parliament and Council with the aim of feeding into the legislative debate.
(For more information: Thomas Regnier – Tel.: +32 2 299 10 99; Patricia Poropat – Tel. + 32 2 299 27 17)
Commission clears creation of joint venture by Tata Sons and Bosch
The European Commission has approved, under the EU Merger Regulation, the creation of a joint venture by Tata AutoComp Systems Limited, controlled by Tata Sons Private Limited (‘Tata Sons’), all of India, and Robert Bosch GmbH (‘Bosch’) of Germany.
The transaction relates primarily to the production and supply of electric axles for the automotive industry in India.
The Commission concluded that the notified transaction would not raise competition concerns, given the limited impact on the European Economic Area. The notified transaction was examined under the simplified merger review procedure.
More information is available on the Commission’s competition website, in the public case register under the case number M.12522.
(For more information: Ricardo Cardoso – Tel.: +32 2 298 01 00; Sara Simonini – Tel.: +32 2 298 33 67)