EU unblocks €90B loan
- The EU moved to unblock a €90bn loan for Ukraine after Hungary lifted its veto. - The breakthrough followed Ukraine restarting Russian oil flows through the Druzhba pipeline to Hungary and Slovakia. - Leaders framed the package as a long-term support bet, signaling Europe will shoulder more backing for Kyiv than the US (theguardian.com, nytimes.com).
European Union governments approved a €90 billion loan for Ukraine on Thursday after Hungary dropped its veto. (consilium.europa.eu) The Council of the European Union said the money is meant to cover Ukraine’s “urgent budgetary and defence” needs in 2026 and 2027. Brussels said the first payment would be made as soon as possible after the final legal step was completed. (consilium.europa.eu, euronews.com) Hungary had blocked the package for about two months during a dispute over oil transit through the Druzhba pipeline, which carries Russian crude across Ukraine to Hungary and Slovakia. Oil flows resumed on Wednesday after repairs to damage caused by a Russian strike in January, and Budapest then lifted its objection. (euronews.com, cnn.com, consilium.europa.eu) Druzhba is a Soviet-era pipeline network, and its southern branch still matters because Hungary and Slovakia remain more dependent on Russian oil than most European Union states. That made a damaged pumping route in western Ukraine a financing issue in Brussels as well as an energy issue in central Europe. (nbcnews.com, aljazeera.com) The loan also shows how Europe is trying to lock in longer-term support for Kyiv as United States backing has become less predictable. The Council said the funding comes with conditions tied to rule of law and anti-corruption measures in Ukraine. (consilium.europa.eu, nytimes.com) European Union governments approved a new sanctions package against Russia alongside the loan, linking the financial aid decision to the bloc’s wider war policy. Cyprus, which holds the rotating presidency of the Council, announced both measures on Thursday. (washingtonpost.com, consilium.europa.eu) Ukrainian President Volodymyr Zelensky said this week that the repaired pipeline “can resume operation,” while Slovak and Hungarian officials had pressed for deliveries to restart. Kyiv has said the January outage followed Russian attacks, not a political decision to cut its neighbors off. (euronews.com, aljazeera.com) What happens next is simpler than the politics that held it up: Brussels starts sending money, and Ukraine gets a bigger European backstop for the next two years. (consilium.europa.eu, euronews.com)
