The European Commission has transferred a further €3.47 billion to Ukraine to pay for drones, missiles, air defence systems and combat aircraft, the latest instalment of the European Union’s €90 billion support loan. The payment, made on July 30, took the sum released under the loan’s defence strand to €8.5 billion. Of the total, €60 billion is reserved for defence industrial capacity and €30 billion for budget support across 2026 and 2027. The money is raised through common EU borrowing on the capital markets and backed by the EU budget. The Commission has put the cost of servicing that debt at about €1 billion in 2027 and around €3 billion a year from 2028, to be carried by the EU budget.