EU approves €90 billion loan package€90 billion loan package to Ukraine after Hungary lifts veto
The European Union approved a €90 billion loan package for Ukraine on April 23, 2026, following the lifting of a Hungarian veto linked to oil pipeline disputes. The funds, split evenly between 2026 and 2027, will cover about two-thirds of Ukraine's estimated €135 billion financial needs, with €60 billion for defense and the rest for budget support. EU institutions like Parliament and the Commission endorsed the package under urgent procedures after agreement at the European Council in December 2025.
This loan provides critical relief to Ukraine's economy amid its war with Russia, averting cuts to public services and sustaining military efforts. Financed through EU borrowing on capital markets and guaranteed by the EU budget, Ukraine will repay it using future Russian war reparations. While a major step, experts note it falls short of the full funding gap, with other allies expected to contribute the remainder.
EU Officials
The loan covers two-thirds of Ukraine's 2026-2027 needs and strengthens defense procurement from EU industries. It uses EU budget headroom for guarantees, with Ukraine repaying via Russian reparations. This support ensures macroeconomic stability and rapid aid delivery.
Ukrainian Perspective
The package averts deep public service cuts and meets key military requirements this year. Kyiv views it as essential for continuing the fight against Russia. More funding may still be needed to fully address wartime demands.
Hungarian Perspective
Hungary lifted its veto after oil resumed flowing through the Druzhba pipeline to Hungary and Slovakia. It opted out of financial contributions along with Czechia and Slovakia under enhanced cooperation. The blockade stemmed from accusations of Ukrainian sabotage, now resolved.
- Druzhba pipeline, built in 1960s, once symbolized Soviet unity supplying oil across Eastern Bloc nations.
- Viktor Orbán led Hungary since 2010, often clashing with EU over rule-of-law issues.
- TISZA party, founded by Peter Magyar in 2024, draws from Hungary's Tisza River symbolizing renewal.
Russia-Ukraine War
Russia and Ukraine are locked in an retaliatory long-range drone and missile war that now strikes deep into both countries, including Moscow, St. Petersburg, Crimea, and major Ukrainian cities like Kyiv and Dnipro. Ukrainian forces launched one of their largest drone attacks on June 26, striking 12 Russian regions and hitting key energy targets, while Russia continues massive retaliatory bombardments that kill civilians and destroy infrastructure.
26 June, 09:41 AM
Ukraine unleashes massive drone bombardment on 12 Russian regions24 June, 10:31 AM
Ukrainian drones knock out power in Russian-held Sevastopol22 June, 03:20 PM
Ukraine strikes Russian missile electronics plant in Voronezh
