In Q1 2026, Ukraine received $5.5 billion in external financial support — nearly 73% less than in Q4 2025, when assistance totaled approximately $20.6 billion. This is according to the Ukraine Financial Support Tracker by KSE Institute, a new quarterly analytical product that monitors the volume, structure, and mechanisms of external financing for Ukraine, while also assessing the prospects and risks of international support going forward.

Of the $5.5 billion received, $4 billion was in the form of grants, while $1.5 billion was in the form of loans. 

The primary source of support remained the ERA mechanism, funded by proceeds generated from frozen Russian assets. Through this mechanism, Ukraine received more than 69% of all inflows during the quarter — $3.8 billion in grants from the United States, Canada, and Japan. At the same time, the grant component of ERA has nearly been exhausted, meaning that future international support will increasingly come in the form of loans.

One of the key developments of the quarter was the approval of a new four-year IMF Extended Fund Facility program worth $8.1 billion. In March, Ukraine received the first tranche of $1.5 billion. To secure this financing, the government completed several prior actions: it adopted the 2026 state budget in line with the program parameters, amended VAT rules for public procurement, and submitted a new draft of the Labour Code to parliament. Provided the program remains on track, Ukraine may receive approximately $1.4 billion more by the end of the year, tentatively in two tranches in June and September. Separately, in March, Norway provided an additional $200 million through the World Bank’s PEACE in Ukraine program.

At the same time, for the first time since its launch, Ukraine did not receive any disbursement under the Ukraine Facility program. Payments totaling €2.9 billion had been expected in Q1 but were postponed due to unfulfilled reform commitments. Eleven benchmarks for 2025 and another six for Q1 2026 remain outstanding. The European Union partially revised its approach and credited several indicators that had been completed ahead of schedule; as a result €2.7 billion is expected to be disbursed in Q2.

A key factor for Ukraine’s financial stability in 2026 will be the Ukraine Support Loan. Following the removal of Hungary’s political blockade, the EU approved €45 billion in financing for this year, of which €16.7 billion is intended for budget support and €28.3 billion for defense needs. The first disbursements are expected in late May or early June 2026. Repayment is linked to future Russian reparations, meaning the loan should not increase Ukraine’s debt burden. The timely activation of  the mechanism is critical; further delays could create a financing gap of up to $10 billion by the end of June.

According to KSE Institute estimates, Ukraine will be able to continue covering its budgetary needs in 2026–2029, provided that international assistance continues to flow as planned and that the full-scale war ends in late 2026.