The bloc’s economy chief, Valdis Dombrovskis, said the move came as Brussels and Kyiv agreed on the underlying conditions for the macro-financial assistance (MFA) component of the broader €90-billion loan.

“We will proceed with a first MFA instalment around mid-June: €3.2 billion,” Dombrovskis told reporters, adding that it was conditional on Ukraine swiftly ratifying the related deal.

The EU signed off in April on the massive loan needed to plug a budget shortfall in Ukraine, after months of wrangling with Hungary, which had vetoed it.

The scheme allows Ukraine to spend about €60 billion on weapons to fight Russia’s invasion.

The remainder is to support Ukraine’s reconstruction and help the government operate as it faces a balance of payments crisis caused by the war – the MFA part.

Dombrovskis told a small group of journalists, including from AFP, that the latter money was tied to Ukraine carrying out reforms aimed at improving public spending efficiency and aligning tax avoidance rules with EU standards, among others.

Brussels and Kyiv were still discussing some of the conditions and technicalities related to the rest of the loan, Dombrovskis said, adding that the first military spending disbursement should nevertheless “be imminent”.

The EU expects the huge loan to cover about two-thirds of Ukraine’s total financing needs for this year and next.

“It’s important for other G7 partners – and other partners – to contribute their part,” Dombrovskis said.

Under the loan deal Kyiv would only pay back the money once the Kremlin compensates it for the destruction it has wrought.