EU Aims to Unlock €90 Billion for Ukraine After Orbán’s Defeat
- The European Union is seeking to unblock a €90 billion loan package for Ukraine following the political defeat of Hungarian Prime Minister Viktor Orbán.
- The loan package was approved by the European Parliament on February 11, 2026.
- The €90 billion total is divided into two primary streams of support to address both military and civil needs:
The European Union is seeking to unblock a €90 billion loan package for Ukraine following the political defeat of Hungarian Prime Minister Viktor Orbán. The financial aid, which has faced significant delays due to opposition from Budapest, is intended to support Ukraine’s defense and economic stability as the conflict with Russia enters its fifth year.
The loan package was approved by the European Parliament on February 11, 2026. The legislation establishes a funding mechanism for 2026 and 2027, utilizing common EU borrowing to raise the necessary capital. Under the terms of the agreement, Ukraine is expected to repay the loan using war reparations received from Russia.
Allocation of Funds
The €90 billion total is divided into two primary streams of support to address both military and civil needs:
- €60 billion is allocated to strengthen Ukraine’s defense capabilities and the procurement of military equipment. This funding prioritizes defense industries within Ukraine, the EU, and the European Economic Area (EEA) and European Free Trade Association (EFTA).
- €30 billion is designated for macro-financial assistance and budget support, which will be delivered through the EU’s Ukraine Facility.
The provision of this assistance is contingent upon Ukraine’s commitment to continue fighting corruption and implementing democratic reforms. The specific disbursement of funds will follow a financing strategy prepared by Ukraine and assessed by the European Commission, which requires approval from the Council.
Political Obstacles and Leadership Change
Despite the European Parliament’s approval, the loan faced a deadlock because one of the necessary bills requires the unanimous approval of all EU member states. Viktor Orbán and Slovak Prime Minister Robert Fico had previously blocked the disbursement, leading to diplomatic tensions within the bloc.
The political landscape in Hungary has shifted with the emergence of Péter Magyar as the new leader. European leaders have expressed hope that Magyar’s leadership will resolve the impasse and allow the EU to move forward with the financial support package.
However, reports indicate that the defeat of Orbán may not immediately unblock the funds, suggesting that administrative or political hurdles remain before the loan is fully released.
Alternative Funding Strategies
To mitigate the impact of the delays in the EU loan, several member states have explored alternative ways to keep Ukraine afloat. EU diplomats have indicated that Ukraine would continue to receive funds from individual EU countries even if the collective loan remained blocked.
Some Baltic and Nordic countries developed plans to provide sufficient funding to support Ukraine through the first half of 2026. It was estimated that Ukraine could require up to €30 billion in bilateral loans to maintain operations until September if the EU-wide loan continued to be delayed. Unlike the €90 billion package, bilateral loans do not require the approval of all EU member states.
the Dutch government has made provisions to provide Kyiv with €3.5 billion per year in bilateral support through 2029.
The EU’s Economy Commissioner, Valdis Dombrovskis, previously stated regarding the difficulties with Hungary that the union would deliver on the loan one way or another
.