EU Approves $144B Ukraine Loan After Hungary Lifts Veto
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- EU ambassadors approved disbursement of a 90 billion euro ($144 billion Cdn) loan to Ukraine plus a new sanctions package against Russia after Hungary lifted its veto, with the 27 member states expected to formally sign off by Thursday afternoon.
- Hungary's Viktor Orban had blocked both measures, accusing Ukraine of sabotaging Russian oil transit through the Druzhba pipeline — a route damaged by Russian attacks — with the spat also delaying sanctions the EU had aimed to adopt for the February 24 anniversary of the invasion.
- Hungarian oil group MOL said it was informed the Ukrainian operator of the Druzhba pipeline was ready to resume crude oil shipments to Hungary and Slovakia, with first deliveries expected by Thursday; both countries remain heavily reliant on Russian energy.
- Peter Magyar, whose party won Hungary's April 12 parliamentary election, has said he will no longer block EU funds for Kyiv, though he is only expected to take power next month.
- The interest-free loan covers two-thirds of Ukraine's estimated 135 billion euro ($216 billion Cdn) two-year need, with 28 billion euros annually for military spending and 17 billion for general budget support.
- Repayment is structured so Ukraine does not pay from its own funds — capital is due only after Russia pays war reparations, using the mechanism of roughly 210 billion euros in frozen Russian central bank assets held in the EU without formally confiscating them.
Why it matters: The loan covers the bulk of Ukraine's 135 billion euro two-year financing gap, and its repayment structure effectively funnels frozen Russian assets back into Ukraine's defense — making Russia, in practice, finance the war against it. Orban's electoral defeat removed the EU's last major internal veto point on supporting Kyiv.
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