EU Formally Approves €90 Billion Loan for Ukraine After Hungary Lifts Veto
The European Union has formally approved a €90 billion loan package to support Ukraine's economic and military needs over the next two years following Hungary's decision to lift its veto.
The loan approval was confirmed by the EU's Cypriot presidency and EU ambassadors, enabling the disbursement of funds to begin promptly.
This financial package aims to help Ukraine sustain its war-ravaged economy and bolster its defense capabilities amid ongoing conflict with Russia.
Ukrainian President Volodymyr Zelensky welcomed the approval, emphasizing the importance of securing financial certainty after more than four years of full-scale war.
He urged for the first tranche of the loan to be disbursed by May or June.
The loan will be used for arms production, procurement of necessary weapons not yet produced domestically, and preparation of Ukraine's energy sector and critical infrastructure for the upcoming winter.
Ukrainian Energy Minister Denys Shmygal highlighted that the funds will help sustain the power system, protect critical infrastructure, and accelerate recovery following extensive damage to energy sites during the winter.
The approval came after Hungary and Slovakia lifted their opposition, which had been linked to disputes over Russian oil deliveries through the Druzhba pipeline.
The pipeline's damage, attributed by Ukrainian officials to Russian drone attacks, had halted oil flows to these countries, causing tensions within the EU.
Hungary's veto had previously blocked the loan and a new package of sanctions against Russia, which were prepared earlier in the year to mark the fourth anniversary of the conflict.
The political green light followed the resumption of Russian oil deliveries to Slovakia.
European Council President Antonio Costa described the move as advancing the EU's dual strategy of strengthening Ukraine and increasing pressure on Russia.
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