After months of disputes and delays, European Union member states have agreed to release a €90bn loan for Ukraine, following signals from Hungary that it would drop its long-standing opposition.
Preliminary approval of the loan was confirmed by the Cypriot presidency of the Council of the European Union, with a final decision expected via written procedure in the coming hours.
The funding is intended to cover Ukraine’s most urgent economic and military needs and to support its defense against Russia’s invasion.
New Sanctions Package Targets Russia
As part of the agreement, the bloc is also stepping up economic pressure on Moscow through a new package of sanctions. Member state representatives have provisionally agreed on a 20th sanctions package targeting Russia’s economy and military capabilities, according to diplomatic sources.
The loan agreement was closely tied to a dispute between Kyiv and Budapest over the suspension of Russian oil supplies to Hungary and Slovakia via the Druzhba pipeline. Ukrainian President Volodymyr Zelensky said on Tuesday that the pipeline had been repaired and was ready to resume operations.
Ukrtransnafta later reported that pressurization and filling of the pipeline from Belarus had begun on the Ukrainian side. Oil supplies to Slovakia are expected to resume on Thursday morning, Economy Minister Denisa Sakova said.
The Cypriot presidency confirmed that both the loan proposal and the sanctions package had received preliminary approval at ambassadorial level. They will now proceed through a written procedure expected to conclude on Thursday afternoon.
According to a German government spokesman, the funds could be disbursed within 24 hours if Hungary does not raise objections in writing.