EU unblocks €90 billion loan to Ukraine

After months of delays, EU member states have cleared the path for a €90 billion loan to Ukraine, which had been stalled by Hungary’s objection. The decision follows diplomatic efforts to resolve the impasse, with the Cypriot EU presidency confirming final approval will be reached on Thursday. The funds are intended to support Kyiv’s critical economic and military requirements amid its ongoing conflict with Russia.

The loan, valued at €90 billion ($106 billion), marks a significant step in the bloc’s financial aid to Ukraine. It was initially delayed due to Hungary’s veto, which has now been lifted. However, the approval process remains contingent on the Druzhba pipeline resuming oil deliveries to the EU. Kyiv reported that the pipeline has restarted, but Hungary and Slovakia could still block the finalization if shipments don’t arrive by Thursday.

“The loan aims to address Ukraine’s most pressing needs,” stated diplomats, highlighting its role in sustaining Kyiv’s defense efforts and stabilizing its economy.

Hungarian Prime Minister Viktor Orban and Slovakia previously criticized Ukraine for delaying pipeline repairs, an allegation Kyiv refuted. The shift in stance came after Orban’s defeat in April elections, with his successor, Peter Magyar, pledging support for the loan despite not assuming office until next month.

Alongside the loan, EU nations also finalized their 20th sanctions package against Russia. The measures, delayed by the Hungary-Slovakia dispute, were originally planned to commemorate the fourth anniversary of the invasion on February 24. These sanctions seek to weaken Russia’s financial capacity to fund its ongoing operations in Ukraine.