The European Union is edging closer to approving a €90 billion ($106 billion) loan package for Ukraine, with officials expressing cautious optimism that months of political deadlock may soon be resolved.
EU envoys meeting in Brussels are assessing whether Hungary will lift its veto on the financial aid, which is intended to support Ukraine’s military and economic needs over the next two years as the war with Russia continues.
The key obstacle has been Hungary’s demand that Russian oil supplies resume through the Druzhba pipeline before it agrees to release the funds. Slovakia has backed similar concerns, as both countries depend heavily on Russian oil.
Ukraine has now completed repairs to the Druzhba pipeline, which President Volodymyr Zelenskyy said had been damaged by Russian strikes. Kyiv hopes the move will remove the final barrier to unlocking the loan.
Hungary’s outgoing Prime Minister Viktor Orbán had tied approval of the funds to the pipeline’s restoration, but his recent electoral defeat and the expected transition to a pro-European leadership have raised expectations of a breakthrough.
EU officials say a final decision could come within 24 hours, potentially aligning with a summit of EU leaders in Cyprus. The loan package, originally agreed in December, is seen as critical to stabilizing Ukraine’s war-stricken economy and sustaining its defence against Russian forces.
The EU is also continuing efforts to pass a new round of sanctions against Russia, though those measures remain stalled due to similar objections from Hungary and Slovakia.
