EU agrees to unblock €90bn loan for Ukraine after Hungary lifts veto
Summary
The European Union (EU) has agreed to release a €90 billion loan for Ukraine after Hungary stopped blocking it. This happened because Ukraine restarted sending Russian oil through a key pipeline to Hungary and Slovakia, ending a dispute that had delayed the loan and new sanctions against Russia.Key Facts
- The EU planned a €90 billion loan to support Ukraine’s finances in 2026 and 2027, split into two €45 billion interest-free loans.
- Hungary vetoed the loan in March due to a disagreement over damage to the Druzhba oil pipeline, which supplies Hungary and Slovakia with Russian oil.
- Ukraine said the pipeline was damaged by Russian drone attacks and was being repaired promptly.
- Hungary’s oil company confirmed oil flow through the pipeline resumed from Belarus to Hungary and Slovakia.
- The loan includes €28 billion annually for military spending and €17 billion for budget needs.
- Ukraine is expected to repay the loan only after Russia pays reparations once the war ends.
- The EU’s new sanctions package against Russia involves more bans on ships, maritime and energy restrictions, and trade limits.
- The EU delay in loan approval also postponed new sanctions planned for the fourth anniversary of Russia’s invasion of Ukraine.
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