EU unblocks €90bn loan
- The EU approved a €90 billion loan package for Ukraine after Hungary lifted its veto. - The unblocking followed Ukraine restarting oil flows through the Druzhba pipeline to Hungary and Slovakia. - The package is heavily weighted toward military spending, suggesting Europe is preparing for a long war (nytimes.com).
The European Union cleared a €90 billion loan for Ukraine on Thursday after Hungary dropped the veto that had held it up for months. (consilium.europa.eu) The Council of the European Union said the money will cover Ukraine’s “urgent budgetary and defence needs” in 2026 and 2027, and that disbursements can now begin under a conditional framework tied to rule-of-law and anti-corruption requirements. (consilium.europa.eu) Hungary lifted its objection after oil started moving again through the Druzhba pipeline, which carries Russian crude across Ukraine to Hungary and Slovakia. Slovakia’s Economy Minister Denisa Saková said flows resumed early Thursday after a stoppage that lasted nearly three months. (politico.eu) That linked two issues Europe had been trying to keep separate: support for Kyiv’s war effort and the energy dependence of two European Union states that still rely heavily on Russian oil. Hungary and Slovakia had used the pipeline outage to block the package. (washingtonpost.com) The loan was first agreed politically by European Union leaders in December 2025, when Brussels was trying to fill a growing gap in Ukraine’s finances for the next two years. The final legal step slipped until April as Budapest withheld consent. (euneighbourseast.eu) European officials have described the package as a way to keep Ukraine’s state running while also expanding weapons production and other defense spending. Politico reported in January that about one-third was aimed at general budget costs and the rest at defense, with European Union firms getting preference for procurement. (politico.eu) The pipeline dispute began after a Russian strike in January damaged infrastructure on the Ukrainian section of Druzhba, cutting deliveries to Hungary and Slovakia. The restart removed the last practical obstacle for governments in Budapest and Bratislava to stop blocking the aid. (usnews.com) Brussels paired the loan approval on Thursday with a 20th sanctions package against Russia, underscoring that the bloc is trying to finance Ukraine and tighten pressure on Moscow at the same time. European Union foreign policy chief Kaja Kallas called the deadlock over. (euneighbourseast.eu) For Kyiv, the immediate result is cash it can start drawing soon; for the European Union, it is another sign that support for Ukraine is being planned in multi-year budgets rather than month-to-month emergency fixes. Brussels said the first payment will be made as soon as possible. (euronews.com)
