Ukraine has received a new €3.5 billion ($3.9 billion) tranche from the EU under the Ukraine Support Loan mechanism, with the funds set to strengthen the country’s defense capabilities and cover urgent government spending. According to Prime Minister Serhii Koretskyi, the latest disbursement will be allocated to defense needs and other priority expenditures.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. “These funds will be directed toward strengthening our defense and financing urgent needs,” Koretskyi said in a statement on Thursday. European Commission spokesperson Balázs Ujvári said during a briefing in Brussels that most of the new tranche would cover the bulk of a €2.5 billion ($2.8 billion) contract for the purchase of 16 Saab Gripen fighter aircraft. The remaining funds will be used to procure drones, including long-range and jet-powered systems, missiles and additional air defense equipment. €11.6 billion already disbursed According to Koretskyi, Ukraine has received a total of €11.6 billion ($13.3 billion) through the Ukraine Support Loan mechanism so far this year. Of that amount, €3.2 billion ($3.7 billion) has been allocated to support the state budget, while €8.4 billion ($9.6 billion) has been directed toward defense. Koretskyi thanked the European Commission and EU member states for what he described as their consistent support for Ukraine. The Ukraine Support Loan is a EU lending instrument worth up to €90 billion ($103 billion) for 2026-27.