Ukraine secures €3.2bn EU payout as Zelensky skips Recovery Conference

Ukraine secured a fresh financial lifeline from the European Union on Thursday, even as President Volodymyr Zelensky's absence from the Ukraine Recovery Conference in Gdansk drew attention amid tensions with Poland.

Prime Minister Yuliia Svyrydenko confirmed that Kiev will receive the first €3.2 billion from a new €90 billion EU support package.

“We have great news. The first disbursement of 3.2 billion euros will be announced today,” she said.

“This disbursement will help us to strengthen our defence, maintain macroeconomic stability within the country and build our energy system ahead of the new heating season,” she added.

Svyrydenko did not address Zelensky's absence during her remarks.

His no-show came after a diplomatic dispute between Ukraine and Poland over Kiev's decision to name a military unit after the Ukrainian Insurgent Army, or UPA.

The UPA is accused of killing tens of thousands of Poles during World War II. In 2016, Poland's parliament passed a resolution condemning what it called 'genocide committed by Ukrainian nationalists'.

The row intensified last week after Polish President Karol Nawrocki said he would strip Zelensky of the Order of the White Eagle, Poland's highest civilian honour, awarded to him in 2023.

European Commission President Ursula von der Leyen used the conference to stress that Ukraine's reforms were moving the country closer to EU membership.

“Earlier this month, we opened the first cluster of negotiations with Ukraine. This was a historic moment,” von der Leyen said. “A strong signal that Ukraine’s future belongs in our European family.”

She also said Ukraine's defence industry had become an important part of the war effort with European support.

“Ukraine's defence industry, with Europe's support, is showing that it can out-innovate Russia's,” she said. “Ukraine now produces drones at a scale that matches and even exceeds Russian production capacity.”

Von der Leyen said Ukraine's accession process would remain based on merit.

“If Ukraine continues to reform with the determination it has shown in recent years, its place in the European family is becoming a reality,” she said.

The €90 billion loan is designed to support Ukraine through 2026 and 2027, with €30 billion allocated for macro-financial assistance and €60 billion for defence.

The first tranche comes after the EU reworked the package, replacing €5.9 billion originally planned for drone production and procurement with €3.2 billion in direct budget support.

The Ukraine Recovery Conference runs from June 25 to 26 in Gdansk, bringing together officials, international organisations and investors to discuss reconstruction, long-term economic development and Ukraine's path toward EU membership.