EU approves €90 billion loan for Ukraine after Hungary lifts veto

The European Union on 23 April approved a €90 billion (USD 106 billion) loan package for Ukraine after Hungary lifted its veto, clearing the way for financial support to flow to Kyiv.

The decision was announced by the Cypriot presidency of the EU, with officials stating that the funds would help Ukraine meet its economic and military needs over the next two years.

“Today the Council approved the final element needed to allow for the disbursement of the 90-billion-euro loan for Ukraine,” Cypriot Finance Minister Makis Keravnos said.

Sanctions package also cleared

Alongside the loan, the EU approved a new set of sanctions against Russia over the ongoing war in Ukraine.

The measures had been prepared earlier this year but were delayed due to opposition from Hungary and Slovakia.

Hungary and Slovakia had been at odds with Ukraine after Russian oil supplies to the two countries were disrupted in January following damage to a key pipeline.

Ukrainian officials attributed the damage to Russian drone attacks, though the issue had strained relations within the EU.

Funding to support war-hit economy

Ukraine is expected to use the funds to stabilise its economy and sustain defence efforts against Russian forces.

The loan package had faced delays after Hungary withdrew support for an earlier agreement reached in December, drawing criticism from other EU members.

The EU has been a key financial and military supporter of Ukraine since the conflict with Russia escalated.

The newly approved loan is part of broader efforts by European nations to maintain support for Kyiv while continuing economic and diplomatic pressure on Moscow.