European Union ambassadors cleared the way on Wednesday for a 90-billion-euro ($106 billion) loan to Ukraine, resolving a prolonged standoff that had threatened to undermine Kyiv's financial stability amid its ongoing war with Russia, according to France 24.
The loan had originally been approved by the European Council in December, but its disbursement was blocked by Hungary, which had used its veto power in a dispute linked to oil flows through the Druzhba pipeline.
What caused the delay
The Druzhba pipeline, which carries Russian oil through Ukraine into Central and Eastern Europe, has been a point of contention between Budapest and other EU member states. Hungary, which remains heavily reliant on Russian energy imports, had leveraged the loan approval process to press its concerns over disruptions to those flows.
The standoff illustrated the recurring tensions between Hungary and the broader EU over policy toward Russia, a divide that has periodically slowed the bloc's collective response to the conflict in Ukraine.
Financial relief for Kyiv
The release of the funds is expected to provide significant relief to Ukraine's strained public finances. Kyiv has relied heavily on international financial support to cover government expenditures while simultaneously funding its military operations against Russian forces.
The loan package forms part of a larger international effort to keep Ukraine economically functional during the conflict. Without continued external financing, Ukrainian officials have warned that the government would face severe difficulties maintaining public services and paying state employees, in addition to sustaining its defense capabilities.
Broader EU support
The resolution marks another chapter in the EU's evolving role as a major financial backer of Ukraine since Russia launched its full-scale invasion in February 2022. The bloc has provided tens of billions of euros in assistance over the course of the conflict, though individual member states have at times complicated unified action.
Wednesday's decision by EU ambassadors signals that the immediate obstacle posed by Hungary's veto has been overcome, though the underlying disputes over energy policy and relations with Russia between Budapest and Brussels remain unresolved.
