German Chancellor Friedrich Merz Welcomes Ukraine Loan Approval

German Chancellor Friedrich Merz has welcomed the final approval of a €90 billion loan for Ukraine by the European Union, calling it a critical step in supporting Kyiv’s defense efforts against Russia’s ongoing invasion.

The loan, which Merz described as interest-free and backed by the EU budget, was given final approval on Thursday, April 23, 2026, after overcoming previous delays linked to Hungarian opposition. Merz emphasized that the funds must be disbursed rapidly to meet Ukraine’s urgent military needs.

“The funds for military support must be disbursed quickly, now,” Merz told reporters in Berlin on April 14, following a meeting with Ukrainian President Volodymyr Zelenskyy. “Ukraine needs them urgently.”

Merz also reiterated his support for Ukraine’s eventual accession to the European Union, rejecting any notion of “second class” membership, although he acknowledged the process would take considerable time.

The approval came after Hungary’s next leader, Peter Magyar, indicated he would not block the loan package, clearing the way for unanimous consent among the EU’s 27 member states. This followed months of delay caused by Hungarian Prime Minister Viktor Orbán’s initial opposition, which he later reversed after Ukraine confirmed progress on repairing the Druzhba pipeline.

Zelenskyy stated that repairs to the Druzhba pipeline, which transports Russian oil to Hungary and Slovakia, would be largely complete by the end of April 2026, allowing the pipeline to resume operations. He linked this development to Hungary’s willingness to lift its objections to EU decisions affecting Ukraine.

During their meeting in Berlin on April 14, Merz and Zelenskyy also announced plans to strengthen bilateral cooperation on defense production, including joint work on advanced drones, missiles, software, and modern defense systems.

Merz said Germany’s commitment to supporting Ukraine’s war effort represents “a very clear signal” to Russia about Western resolve and Kyiv’s staying power in the conflict.

The €90 billion loan package, first agreed upon by EU leaders in December 2025, is intended to fund military equipment and support Ukraine’s long-term defense capacity. Merz has previously advocated for leveraging frozen Russian assets to back such financing, proposing in September 2025 a larger €140 billion interest-free loan tied to those assets, with EU guarantees extending to 2028.

With final EU approval now secured, the focus shifts to the swift disbursement of funds to enable Ukraine to continue its defense operations and strengthen its position in any future negotiations.