EU unblocks €90bn loan for Ukraine after Hungary drops veto

European Union member states have reached an agreement to unblock a critical €90 billion loan for Ukraine and a new package of sanctions against Russia. EU ambassadors gave preliminary approval on Wednesday, with formal sign-off expected by Thursday afternoon. The funding is designed to support Ukraine's military and financial needs over the next two years.

The decision ends months of deadlock caused by a veto from Hungary. The dispute centered on the Druzhba pipeline, which carries Russian oil to Hungary and Slovakia and was damaged by a Russian strike in January. President Volodymyr Zelenskyy confirmed that the pipeline has been repaired and oil flows have resumed, prompting Budapest to lift its veto.

The resolution comes following the electoral defeat of Hungarian Prime Minister Viktor Orbán by pro-EU rival Peter Magyar, signaling a more constructive relationship between Ukraine and the European Union. This support arrives at a time when the United States has largely cut Kyiv off. President Zelenskyy is scheduled to meet with EU leaders in Cyprus on Thursday as the bloc prepares for final approval.

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