EU Approves New Russia Sanctions and Credit Facility for Ukraine to Enable Emergency Government Loans

The European Union formally approved a 90-billion-euro ($106 billion) loan package for Ukraine on Thursday, April 23, 2026, after Hungary lifted its veto following the resumption of Russian oil deliveries through a key pipeline to Hungary and Slovakia.

The loan, intended to finance Ukraine’s urgent budgetary and defense needs for 2026 and 2027, was part of a broader package that also included a new round of sanctions against Russia. The measures had been prepared earlier in the year but were delayed due to opposition from Hungary and Slovakia, which linked their approval to the restoration of oil flows via the Druzhba pipeline.

Hungary and Slovakia had blocked the loan and sanctions for months, citing their dependence on Russian oil imports. The deadlock was broken when Ukrainian President Volodymyr Zelenskyy authorized repairs to the damaged pipeline section, allowing oil deliveries to resume to the two EU countries.

EU officials confirmed that the pipeline, which had been damaged by Russian drone attacks in January, was now operational again. Both Hungary and Slovakia confirmed on Thursday that oil deliveries had resumed, removing their final obstacle to approving the financial assistance package for Ukraine.

The 90-billion-euro loan equates to approximately $106 billion at current exchange rates. EU Council President António Costa announced the approval ahead of an informal summit of EU leaders in Cyprus, stating that the funds would be made available in the coming weeks and months to support Ukraine’s war-torn economy and defense efforts.

In a statement on social media, Costa wrote: “Promised, delivered, implemented,” underscoring the EU’s commitment to Ukraine. Speaking at the summit in Ayia Napa, Cyprus, he added that the priority must now be advancing Ukraine’s quest to join the bloc.

Ukrainian President Volodymyr Zelenskyy, who attended the summit, thanked European partners for their support and pledged to ensure the funds are delivered as soon as possible. He emphasized that the loan is critical to propping up Ukraine’s economy and helping keep Russian forces at bay.

The EU also approved a new raft of sanctions against Russia over its war on Ukraine. These measures, prepared early in 2026 to mark the fourth anniversary of the conflict, had been held up by Hungary and Slovakia until the pipeline issue was resolved.

EU Commissioner for Enlargement Marta Kos noted that the loan approval came as a significant relief, as Ukrainian financial reserves were projected to run out within a couple of months without external support. The funding is expected to help stabilize Ukraine’s budget and sustain its defense capabilities through 2027.

The resolution of the pipeline dispute marks a turning point in EU internal cohesion on Ukraine support, with the two previously dissenting member states now aligned with the bloc’s broader strategy of providing financial and sanctions pressure on Russia.