The announcement came from the bloc’s foreign policy chief Josep Borrell in a video news conference on Monday.
“We’ve not been able to provide a lot of humanitarian help but there is some €20 million in the pipeline … that we expect to be delivered over the next weeks,” Borrell said.
The EU top diplomat said the union will also back Iran’s request for a loan from the International Monetary Fund (IMF).
Teheran this month turned to the Washington-based global financial institution for an emergency fund to curb Coronavirus which has severely affected the Gulf country.
Over 1,930 people have died from the infection while the number of contamination has hit at least 24,800 people.
The national efforts to stem the spread has been crippled by US sanctions imposed on the country making importation of medical equipment difficult.
Authorities have rejected Washington’s help offer. President Hassan Rouhani said offering to help will mean to lift the sanctions.