EU approves €90B loan

The European Union on Thursday cleared a €90 billion loan for Ukraine, turning a December pledge into money the European Commission can start disbursing this quarter. (consilium.europa.eu) The Council of the European Union adopted the last legislation needed on April 23, after EU leaders first agreed the package on December 18, 2025. The Commission said payments can begin “as soon as possible” in the second quarter of 2026. (consilium.europa.eu (consilium.europa.eu)) The money is split into two tracks: €30 billion for Ukraine’s budget and €60 billion for defence production and weapons procurement. The EU says the loan is backed by EU budget headroom and financed through EU borrowing on capital markets. (consilium.europa.eu (consilium.europa.eu)) The vote ends a two-month standoff that began in February, when Hungary blocked the package after previously accepting the December deal and securing an opt-out on budget guarantees alongside Slovakia and the Czech Republic. The original European Council text said those three countries would not take on extra financial obligations from the guarantee structure. (euronews.com (consilium.europa.eu)) The immediate trigger for the breakthrough was oil, not aid. EU diplomats told Politico that Hungary tied its approval to the resumption of flows through the Soviet-era Druzhba pipeline, which carries Russian crude through Ukraine to Hungary and Slovakia. (politico.eu) Ukrainian President Volodymyr Zelenskyy said on April 21 that the pipeline had been repaired, and Euronews reported that oil flows resumed before ambassadors moved the package on Wednesday and ministers finalized it on Thursday. Slovakia’s Economy Minister Denisa Sáková said supplies were expected to restart this week. (politico.eu (euronews.com)) The loan is paired with the European Union’s 20th sanctions package on Russia. At a Foreign Affairs Council meeting on April 21, ministers linked the Ukraine loan to a broader push for more pressure on Russia through new sanctions and other restrictive measures. (consilium.europa.eu (usnews.com)) This package adds to a much larger EU support effort. The Council says the EU and its member states have mobilized €104.5 billion in financial, economic and humanitarian support for Ukraine since Russia’s full-scale invasion, and €194.9 billion when military support, immobilised Russian assets and refugee support are included. (consilium.europa.eu) The repayment formula is also unusual: the Council says Ukraine would repay the €90 billion loan only once Russia compensates Ukraine for war damage, while Russian assets remain immobilised and the EU reserves the right to use them to repay the loan in line with EU and international law. (consilium.europa.eu (consilium.europa.eu)) For Kyiv, the next step is cash, not another summit. Zelenskyy said he is working to make the first tranche available in May or June, while Brussels says the first disbursement will follow once the remaining legal and technical documents are in place. (euronews.com (consilium.europa.eu))