EU approves €90 bn for Ukraine

The move follows Hungary lifting its veto, while the bloc also adopted new Russia sanctions.

The European Union has formally approved a €90 billion ($105 billion) emergency loan for Ukraine for 2026–2027 and adopted its 20th package of sanctions against Russia, the bloc’s presidency said on Thursday.

European Council President Antonio Costa said in a statement that increasing pressure on Russia was part of a strategy “to achieve a just and lasting peace in Ukraine.”

EU ambassadors approved the loan and sanctions package on Wednesday after Hungary lifted its veto following the election win of pro-EU politician Peter Magyar, who is slated to soon take over the government.

The controversial loan to Kiev was the focus of a months-long standoff with Hungary. Viktor Orban, the outgoing head of the Hungarian government, froze the disbursement of Ukrainian funding in retaliation for the halting of oil supplies via the Soviet-era Druzhba pipeline in January. He called it a politically motivated ploy aimed at supporting Magyar’s party in the April 12 parliamentary election.

Cypriot Finance Minister Makis Keravnos, whose country currently holds the EU presidency, said the disbursement of the funds would start “as soon as possible.”

“Promised, delivered, implemented,” Costa said in a post on X.

European Commission President Ursula von der Leyen said the EU “will move to swiftly implement on both fronts,” stepping up pressure on Russia and ramping up aid for Kiev.

EU foreign policy chief Kaja Kallas said on X that the bloc would provide Ukraine “what it needs to hold its ground.”

The approval came after Ukraine restarted the flow of Russian oil to the EU via the Druzhba pipeline under pressure from Hungary, Slovakia – heavily reliant on Russian energy – and its EU backers. Kiev had halted supplies, claiming the infrastructure was damaged by Russian strikes, an accusation Moscow dismissed as “lies.”

The €90 billion loan, backed by joint EU borrowing and repayable only if Kiev receives war reparations from Russia, was pushed through after plans to seize Russian sovereign assets frozen in the West failed.

Russian Foreign Ministry spokeswoman Maria Zakharova warned the funds could be misused by corrupt Ukrainian officials, while Kremlin spokesman Dmitry Peskov said the EU was “digging into the pockets of its own taxpayers” to prolong the conflict.

Image credit: Christian Lue