EU Approves €90 Billion Loan to Ukraine as Hungary Lifts Veto, Paving Way for New Sanctions on Russia

The European Union has approved a €90 billion loan package for Ukraine, ending a prolonged deadlock after Hungary lifted its veto, paving the way for financial support and potential new sanctions against Russia.

The decision, confirmed by EU officials on April 22, 2026, follows months of political deadlock primarily driven by Hungarian Prime Minister Viktor Orbán’s opposition to the loan, which was linked to the resumption of Russian oil flows through the Druzhba pipeline. Orbán had indicated he would lift his veto once there were clear indications that oil transit via the pipeline would resume, a condition now reportedly met.

EU foreign policy chief Kaja Kallas stated there was “new momentum” following the Hungarian elections and expressed confidence that a positive decision on the loan would come within the next 24 hours, emphasizing that continued support for Ukraine is essential to demonstrate that Russia cannot outlast Kyiv in the ongoing war.

The loan package, amounting to €90 billion (approximately $106 billion), is structured to include €60 billion for strengthening Ukraine’s defence capabilities and €30 billion for macro-financial assistance and budget support. The funds will be financed through common EU borrowing, with repayment expected from future war reparations Ukraine may receive from Russia.

European Parliament had previously approved the loan package in February 2026, endorsing three legislative proposals to make the funds available for 2026 and 2027. The support is framed as a response to Russia’s continued war of aggression, now in its fifth year, and aims to meet Ukraine’s urgent financing needs as outlined in a financing strategy assessed by the European Commission.

Valdis Dombrovskis, European Commissioner for the Economy, noted that even if the veto had persisted temporarily, Ukraine would have sustainable financing until the end of May or early June 2026 due to contributions from other allies that compensated for the delay. He did not rule out the veto being lifted “this week,” reflecting growing optimism among EU officials.

The resolution of the Hungarian veto is also expected to facilitate the adoption of a new package of sanctions against Russia, which had been stalled due to the unanimity requirement in EU decision-making. The approval of the loan marks a significant step in restoring the bloc’s collective decision-making capacity on Ukraine-related matters.

With the veto now lifted, the EU is poised to begin disbursing the loan, providing critical financial backing to Ukraine as it continues to defend itself against the ongoing invasion. The development underscores renewed alignment among member states on supporting Kyiv amid the protracted conflict.