EU releases €3 billion Ukraine loan; Russia shifts air defences as per Kyiv's claim

The European Union on Thursday disbursed the first €3 billion tranche of a €90 billion support package for Ukraine as Kyiv claimed Russia was redeploying air defence systems to protect Moscow and other strategic locations from increasingly effective long-range Ukrainian drone attacks.

The financial package was announced at the Ukraine Recovery Conference in Poland, where European leaders reaffirmed long-term political, military and economic backing for Kyiv. Ukrainian Prime Minister Yulia Svyrydenko said the funds marked the beginning of a two-year EU commitment to help rebuild the war-ravaged country.

European Commission President Ursula von der Leyen said EU member states have already provided €200 billion in economic, financial and military assistance to Ukraine since Russia's full-scale invasion in February 2022. She also announced that another €6 billion dedicated to expanding Ukraine's drone production would begin flowing in the coming days.

German Chancellor Friedrich Merz said Europe was also launching a new equity fund backed by an initial public investment of up to €220 million to attract private investment into strategic sectors of Ukraine's economy. According to Svyrydenko, Ukraine expects to sign around 160 agreements worth more than €10 billion during the conference.

The announcements came as Ukrainian President Volodymyr Zelenskyy said Russia was shifting a significant portion of its air defence systems to protect Moscow, President Vladimir Putin's residence in Valdai and the Kerch Bridge linking mainland Russia to occupied Crimea.

Zelenskyy claimed nearly 90 missile launchers had been redeployed to Valdai from other regions, while hundreds of air defence launchers were concentrated around Moscow. He argued the redeployment reflected Russia's growing concern over Ukraine's expanding long-range drone campaign and could leave other parts of the country more exposed.

Ukraine has intensified attacks on Russian military and energy infrastructure in recent months. Zelenskyy said Ukrainian forces struck two oil refineries in Ufa, about 1,500 kilometres from the front line, and an oil depot in Russia's Krasnodar region during the latest overnight operation.

He said the campaign had disrupted Russian fuel supplies and logistics, adding that further military pressure would depend on additional assistance promised by Western partners during the recent G7 summit.

Ukraine has accepted an unconditional ceasefire proposed by US President Donald Trump, Zelenskyy said, while accusing Moscow of rejecting genuine peace negotiations.

Separately, Zelenskyy said Belarus had switched off signal relay equipment that Ukraine claimed Russia had been using to guide drone attacks into western Ukraine after Kyiv warned it could target the installations.

Meanwhile, Russia launched a ballistic missile and 90 drones at Ukraine overnight, according to the Ukrainian Air Force. Drone strikes hit petrol stations in the Sumy and Zaporizhzhia regions, injuring several people.

Russia's Defence Ministry said its air defences intercepted 269 Ukrainian drones overnight, while temporary flight restrictions were imposed at several Russian airports.

The recovery conference proceeded despite recent diplomatic tensions between Poland and Ukraine following a dispute over historical issues that prompted Zelenskyy to skip the event. Polish Prime Minister Donald Tusk said future cooperation between the two countries should be built on "truth, mutual respect and understanding the past."