Ukraine gets $106B loan package from EU after Hungary reverses vote – National
The European Union on Thursday approved a huge loan package to help Ukraine meet its economic and military needs for the next two years, the Cypriot bloc’s president said, after Hungary lifted its veto.
The EU has also approved a number of sanctions against Russia over its war with Ukraine. The measures were prepared earlier this year and will be announced in February to mark the fourth anniversary of the conflict, but Hungary and Slovakia oppose the move.
Hungary and Slovakia have been at loggerheads with Ukraine since Russian oil deliveries to the two EU countries were halted in January after a pipeline was damaged. Ukrainian officials blame the damage on Russian airstrikes.
Ukraine desperately needs a 90 billion euro ($106 billion) loan package to boost its war-torn economy and help Russian troops flee. Hungary has angered its EU partners by withdrawing from a December bailout deal.
“Today the Council approved the last part needed to release a loan of 90 billion euros to Ukraine,” said Cypriot Finance Minister Makis Keravnos. “Loans will begin to flow quickly, providing critical support for Ukraine’s most pressing budget needs.”
The flow of Russian oil to Slovakia via the Druzhba pipeline through Ukraine has begun, Slovakia’s Economy Minister Denisa Saková said on Thursday, the latest in an issue that has caused major diplomatic tensions in Europe.
Slovakia’s Prime Minister, Robert Fico, welcomed the development, calling it “good news.”
“Let’s hope there is a difficult relationship between Ukraine and the European Union,” said Fico. He thanked all those involved in solving this issue, including the European Commission and Hungary.
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Hungary and Slovakia have been at loggerheads with Ukraine since the delivery of Russian oil to Hungary and Slovakia via pipeline was halted in January after the pipeline was damaged.
Ukrainian officials blame the damage on Russian airstrikes.
Hungarian Prime Minister Viktor Orbán, who has just lost an election, has accused Ukraine of deliberately delaying the reforms – allegations denied by Ukrainian President Volodymyr Zelenskyy.
Fico said on Thursday that he did not believe at all that the pipeline was damaged and suspected that the pipeline and oil were “used in the current political battle.”
Ukraine and most of its European allies oppose the purchase of Russian oil that has helped finance Russian President Vladimir Putin’s war with Ukraine, now in its fifth year. But unlike the rest of the European Union, Hungary and Slovakia still rely on Russia for their energy needs.
It has been two months since these countries accused Ukraine of failing to repair the damaged pipeline. Citing the issue, Hungary blocked a major EU loan to Ukraine while Slovakia refused to agree to new sanctions against Russia until things restarted.
Flows resumed after three months at 2 a.m. Thursday, Slovakia’s Economy Ministry said, clearing a major hurdle in approving EU funds for Ukraine later Thursday, just as EU leaders gathered for a summit in Cyprus.
Ukraine desperately needs a 90 billion euro ($106 billion) loan package, agreed in December, to boost its war-torn economy and help Russian troops flee for the next two years.
The 27-nation EU originally intended to use frozen Russian assets as collateral for the loan. But that option was blocked by Belgium, where large quantities of frozen goods are held.
In December, the Czech Republic, Hungary and Slovakia agreed that they would not prevent their EU partners from borrowing on international markets as long as the three countries did not have to participate in the process.
But Orbán, who has repeatedly blocked EU aid to Ukraine, angered 24 other countries by withdrawing that deal over the pipeline dispute and as the campaign heated up ahead of the April 12 election he suffered a crushing defeat.
The EU has also been trying since February to move to another new sanction against Russia, Hungary and Slovakia which have blocked it because of the oil dispute.
Fico said he expects both issues to be resolved on Thursday.
© 2026 The Canadian Press
