EU agrees €90B loan
The EU will secure a €90 billion loan package for Ukraine despite resistance from Hungary — a major move to keep Kyiv funded through the war and signal unity among Western allies. This financing matters because it underwrites continued military and economic support at scale while highlighting internal EU political friction. (x.com)
EU ambassadors agreed the legal framework to implement the loan on Feb. 4 and the Council said it aims for a speedy deal with Parliament so the first disbursement can be made in the early second quarter. (consilium.europa.eu) The European Parliament approved the package on Feb. 11 by 458 votes to 140, authorising a split of €60 billion for defence procurement and €30 billion for macro‑financial/budget support. (europarl.europa.eu) The financing will come from common EU borrowing backed by the bloc’s budget headroom under an enhanced‑cooperation design, and legislation foresees that Ukraine would ultimately reimburse the loan from future Russian war reparations if and when those are secured. (epthinktank.eu) At the recent European Council session Budapest and Bratislava withheld backing for conclusions on the loan, leaving 25 member states in favour while Hungary and Slovakia did not support the text. (euperspectives.eu) Hungary has publicly linked its veto to oil transit via the Druzhba pipeline, saying it will block the loan until Russian crude flows are restored to Hungary. (euronews.com) Brussels pursued de‑escalation measures: Ukraine accepted an EU inspection offer for the Druzhba pipeline on March 17 and European Commission President Ursula von der Leyen vowed the bloc will deliver the €90 billion “one way or the other” after leaders failed to persuade Prime Minister Viktor Orbán to lift the blockade. (euronews.com) Coreper ambassadors also approved implementation mechanisms on Feb. 4 that explicitly allow third countries to participate in the support loan, keeping the scheme open to non‑EU contributions while work continues to unblock Council unanimity. (pravda.com.ua)
