to support macro-financial stability via the easing of Ukraine’s external and internal financing constraints; and

to support Ukraine’s defence industrial capacities through economic, financial and technical cooperation.

the main macroeconomic assumptions underpinning the Ukrainian Financing Strategy;

information on Ukraine’s budget, per quarter and per year, including:

information on Ukraine’s past and projected financial developments in the general government, per quarter and per year, including:

information on the implementation of previously granted assistance under the Ukraine Support Loan, including any financial recoveries thereof;

information on projected in-kind military assistance needs;

on the basis of Ukraine’s budget and the projected in-kind military assistance needs, the expected external financing needs for the period covered by that Ukrainian Financing Strategy, including a breakdown of the amounts in that budget necessary for the objectives set out in Article 2(2). That breakdown shall contain the value of defence products to be purchased outside the Union and Ukraine;

committed and expected external financing and in-kind military assistance at the time of submission of the Ukrainian Financing Strategy for the period covered by that Ukrainian Financing Strategy, including a breakdown of the amounts of that external financing to be used in line with the objectives set out in Article 2(2);

on the basis of the information in points (f) and (g) of this paragraph, the expected external financing gap for which Ukraine seeks assistance under the Ukraine Support Loan under that Ukrainian Financing Strategy, including a breakdown of the amounts of that expected external financing gap for the objectives set out in Article 2(2); and

in order to support multiannual expenditure under Chapter IV of this Regulation, information on potential multiannual needs and a corresponding budget.

the completeness, feasibility and coherence of the Ukrainian Financing Strategy with the underlying assumptions;

the consistency of the information in the Ukrainian Financing Strategy with external sources, including any recent reviews of the IMF and information from the Ukraine Donor Platform and the Ukraine Defence Contact Group;

the consistency of the expected external financing gap with the following indicative distribution of the Ukraine Support Loan:

compliance with the precondition set out in Article 5(1).

determine the amount of assistance to be made accessible to Ukraine to assist in the implementation of the Ukrainian Financing Strategy, including the amount of that assistance accessible:

establish the maximum number and indicative value of instalments for the assistance accessible for macro-financial assistance in accordance with Chapter III of this Regulation.

respect the maximum amount available for the Ukraine Support Loan provided for in Article 4(1);

take into account the need to ensure a fair burden sharing with other donors in covering Ukraine’s financing needs.

for budget assistance, determine to what extent regular budget assistance can be provided in the form of a loan to be implemented pursuant to Chapter III of Regulation (EU) 2024/792 or as macro-financial assistance in accordance with Chapter III of this Regulation, as appropriate.

speed up the adjustment of the Ukrainian defence industry to structural changes, including through the creation and ramp-up of its manufacturing capacities as well as related supporting activities;

improve the timely availability of defence products or other products for defence purposes for Ukraine, including through the reduction of their delivery lead time, reservation of manufacturing slots or stockpiling of defence products or other products for defence purposes, intermediate products or raw materials; or

enhance cross-border cooperation between the European Defence Technological and Industrial Base and the Ukrainian Defence Technological and Industrial Base, taking into account the defence industrial reinforcement and defence procurement needs of Ukraine, allowing for interchangeability of defence products or other products for defence purposes manufactured by the Ukrainian defence industry and the European defence industry.

category one: ammunition and missiles; artillery systems, including deep precision strike capabilities; ground combat capabilities and their support systems, including soldier equipment and infantry weapons; small drones (NATO class 1) and related anti-drone systems; critical infrastructure protection; cyber; and military mobility including counter-mobility;

category two: air and missile defence systems; maritime surface and underwater capabilities; drones other than small drones (NATO classes 2 and 3) and related anti-drone systems; strategic enablers such as, but not limited to, strategic airlift, air-to-air refuelling, C4ISTAR systems as well as space assets and services; space assets protection; artificial intelligence and electronic warfare.

manufacturers and subcontractors involved in the production of the defence products shall be established and have their executive management structures in the Union, in an EEA EFTA State or in Ukraine. They shall not be subject to control by a third country which is not an EEA EFTA State or Ukraine or by another third-country entity which is not established in the Union, in an EEA EFTA State or in Ukraine;

by way of derogation from point (a), in order to take into account industrial cooperation with non-EU partners, defence products that involve a subcontractor involved in the production which is allocated between 15 % and 35 % of the value of the contract, and that is not established or does not have its executive management structures in the Union, in an EEA EFTA State or in Ukraine, shall be eligible provided that at least one of the following conditions are met:

by way of derogation from point (a) of this paragraph, defence products involving manufacturers or subcontractors established in the Union and controlled by another third country which is not an EEA EFTA State or Ukraine or by another third-country entity which is not established in the Union, in an EEA EFTA State or in Ukraine shall be eligible if that manufacturer or subcontractor has been subject to screening within the meaning of Regulation (EU) 2019/452 of the European Parliament and of the Council ( 1 ) and, where necessary, to appropriate mitigation measures, or if that manufacturer or subcontractor provides guarantees in accordance with point (d) of this paragraph, verified by the Member State in which it is established;

the guarantees referred to in point (c) of this paragraph shall provide assurances that the involvement of the manufacturer or subcontractor in the production of the defence product does not contravene the security and defence interests of the Union and its Member States as established in the framework of the CFSP pursuant to Title V of the TEU. Those guarantees shall in particular substantiate that, for the purposes of activities, expenditures and measures, measures are in place to ensure that:

the infrastructure, facilities, assets and resources of the manufacturers and subcontractors involved in the production of the defence products shall be located in the territory of a Member State, an EEA EFTA State or Ukraine. Where manufacturers or subcontractors involved in the production of the defence products have no readily available alternatives or relevant infrastructure, facilities, assets and resources in the territory of a Member State, an EEA EFTA State or Ukraine, they may use their infrastructure, facilities, assets and resources which are located or held outside those territories, provided that such use does not contravene the security and defence interests of the Union and its Member States;

manufacturers and subcontractors involved in the production of the defence products may be considered to fulfil the eligibility conditions referred to in this paragraph where they have fulfilled equivalent conditions under Regulations (EU) 2018/1092 ( 2 ), (EU) 2021/697 ( 3 ), (EU) 2023/1525 ( 4 ), or (EU) 2023/2418 ( 5 ) of the European Parliament and of the Council or under Regulation (EU) 2025/1106 and provided that no subsequent changes call into question the fulfilment of those conditions;

the cost of components originating outside the Union, EEA EFTA States and Ukraine shall not be higher than 35 % of the estimated cost of the components of the defence product. No component shall be sourced from a third country that contravenes the security and defence interests of the Union and its Member States;

for defence products related to category two as referred to in paragraph 2, point (b), of this Article, manufacturers shall have the ability to decide, without restrictions imposed by third countries or by third-country entities, on the definition, adaptation and evolution of the design of the defence product procured, including the legal authority to substitute or remove components that are subject to restrictions imposed by third countries or by third-country entities.

there is no equivalent product that responds to that urgent need which complies with the conditions set out in paragraphs 2 and 4 or it is not available at the required scale and whose delivery lead time is commensurate with the urgency of the situation and Ukraine’s immediate operational needs; or

the delivery lead time for such defence product is significantly shorter than for a defence product which would comply with the conditions set out in paragraphs 2 and 4 of this Article, even if that defence product was subject to a priority-rated request as referred to in Article 19.

procurements by Ukraine, subject to the procurement and delivery being validated by the Commission or Participating Member States. Ukraine shall be responsible for such procurements in accordance with Ukrainian law, where validations by the Commission or Participating Member States shall include, on a sample basis, checks on contractual documentation, invoices and delivery certificates, physical inspections to suppliers and physical verification of deliveries;

procurements by Ukraine that are a common procurement in accordance with Regulation (EU) 2025/1106;

agreements between Ukraine and Member States or the European Defence Agency (EDA);

procurement agreements between Ukraine and international or intergovernmental organisations; or

contributions by Ukraine to the Ukraine Support Instrument established by Regulation (EU) 2025/2643, the Ukraine Investment Framework established by Regulation (EU) 2024/792 for dual-use goods or other Union programmes.

the third country has committed to provide a fair and proportionate financial contribution to the costs arising from borrowing, commensurate with the value of contracts awarded to entities established in that third country. Such contribution shall take the form of cash to the borrowing costs subsidy on the basis of a contribution agreement between the third country and the Union. It shall constitute external assigned revenue in accordance with Article 21(2), point (e), of Regulation (EU, Euratom) 2024/2509;

the third country has entered into a Security and Defence Partnership with the Union; and

the third country is providing financial and military support to Ukraine in a significant manner.

a description of the defence product or other product for defence purposes; and

information on compliance with Article 13.

the initial request from Ukraine;

the list of products to be subject to the prioritisation measure, their specifications and the quantities in which they are to be supplied;

the time limits within which the delivery of the defence products is to be completed;

evidence that the economic operator cannot meet the request from Ukraine referred to in point (a) without a prioritisation measure; and

an indication of a fair and reasonable price at which the prioritisation measure could be placed as well as elements substantiating that price.

the legal basis of the priority-rated request to be complied with by the economic operator;

the list of products subject to the priority-rated request, their specifications and the quantities in which they are to be supplied;

the time limits within which the priority-rated request is to be completed;

the beneficiaries of the priority-rated request;

the scope of contractual obligations over which the priority-rated request shall have precedence;

the waiver of contractual liability under the conditions laid down in paragraph 7; and

the penalties provided for in paragraphs 12 to 18 for non-compliance with the obligations stemming from that implementing act.

be placed at a fair and reasonable price, adequately taking into account the economic operator’s opportunity costs when fulfilling the prioritisation measure as compared to existing contractual obligations; and

take precedence over any contractual obligations under private or public law related to the defence products subject to the prioritisation measure, under the conditions laid down in the implementing act referred to in paragraph 5.

the breach of contractual obligation is strictly necessary for compliance with the required prioritisation;

the implementing act referred to in paragraph 5 has been complied with; and

the request referred to in paragraph 1 did not have the sole purpose of unduly avoiding a prior performance obligation under private or public law.

the economic operator is unable to perform the prioritisation measure on account of insufficient production capability or production capacity, even under preferential treatment of the request;

completion of the prioritisation measure would place an unreasonable economic burden on, and entail particular hardship for, the economic operator.

the economic operator is unable to perform the priority-rated request on account of insufficient production capability or production capacity, or on technical grounds; or

performance or completion of the request would place an unreasonable economic burden on, and entail particular hardship for, the economic operator, including substantial risks relating to business continuity.

the preliminary findings of the Commission, including any matter in relation to which the Commission has raised objections;

the measures that the Commission may intend to take in view of the preliminary findings pursuant to point (a) of this paragraph.

the Ukraine Support Loan is to be a limited recourse loan that becomes due and payable upon the occurrence of a repayment trigger as defined in subparagraph (j);

Ukraine provides the Union with a security interest over its claim on Russia for reparations as security for the Ukraine Support Loan. The value of that security interest shall at any given time be equal to the value of disbursed funds under the Ukraine Support Loan;

the rights, responsibilities and obligation provided for in the Framework Agreement under the Ukraine Facility referred to in Article 9 of Regulation (EU) 2024/792 apply to the Ukraine Support Loan Agreement and the funds therein;

the amount of assistance referred to in Article 8(2), point (a)(i), of this Regulation is to be implemented in accordance with Chapter III of Regulation (EU) 2024/792, with the exception of rules on the duration and repayment of the loan, including the borrowing costs subsidy, as referred to in Article 22, which are to be governed by this Regulation;

Ukraine utilises the same management and control systems as proposed in the Ukraine Plan established under Regulation (EU) 2024/792, including beyond the availability period referred to in Article 6(2) of that Regulation;

the Commission has the right to monitor activities, expenditures and measures under Chapter IV of this Regulation that are carried out by the Ukrainian authorities, along the whole project cycle;

Ukraine is to immediately notify the Commission should a draft contract or agreement financed through the Ukraine Support Loan not be implemented;

Ukraine continues to respect the precondition set out in Article 5(1);

Ukraine does not reverse any measure taken under any other current or previous instruments of support provided by the Union or IMF concerning anti-corruption;

Ukraine is to be liable for the repayment of the principal of the Ukraine Support Loan within 30 days, if any of the following conditions are fulfilled, each constituting a repayment trigger for the purposes of this Regulation:

Ukraine is liable to repay the Ukraine Support Loan:

any amounts of the Ukraine Support Loan not covered by the liability referred to in point (k) are to remain in place until future repayment trigger events occur;

in the case of payments or recoveries, Ukraine is to indicate the relevant payments from the Ukraine Support Loan that are being repaid or recovered;

the Union has the right to make use of Russian assets immobilised in the Union to repay the loan, in full accordance with Union and international law;

Ukraine is to ensure that the procurement procedures and contracts for other products for defence purpose resulting from procurement receiving support under the Ukraine Support Loan contain appropriate eligibility conditions to protect the security and defence interests of the Union and its Member States.

the request for funds may cover multiple products. For each covered product, the request for funds shall contain a contract or agreement in compliance with Article 13 and a schedule in accordance with Article 14. Such contracts or agreements may be signed or in a finalised draft form;

if the request for funds requests funding for an amount greater than 20 % of the amount made accessible in accordance with the Council implementing decision referred to in Article 8, Ukraine shall provide a detailed justification, including on the impact for future requests for funds under that implementing decision.

for macro-financial assistance:

for assistance to support Ukraine’s defence industrial capacities:

examine progress made in implementing the Ukraine Support Loan;

provide information on the monitoring referred to in Article 17; and

assess the economic situation and prospects of Ukraine, as well as progress made in implementing the policy conditions referred to in Article 11(1).