Full Breakdown
EU Approves Loan Package for Ukraine After Hungary Lifts Veto
4/24/2026, 4:16:36 AM
Resumption of Oil Flow and Loan Approval
On Thursday, the European Union (EU) approved a significant loan package of 90 billion euros (approximately US$106 billion) to support Ukraine's economic and military needs over the next two years. This decision came after Hungary lifted its veto, which had previously stalled the financial assistance. The approval coincided with the resumption of Russian oil deliveries to Slovakia through the Druzhba pipeline, a development that alleviated a major diplomatic dispute between Ukraine, Hungary, and Slovakia.
The loan package is critical for Ukraine, which is facing severe economic challenges due to the ongoing conflict with Russia, now in its fifth year. Cypriot Finance Minister Makis Keravnos stated, “Today the Council approved the final element needed to allow for the disbursement of the 90-billion-euro loan for Ukraine,” emphasizing the urgency of providing support for Ukraine's budgetary needs.
Background of the Dispute
Hungary and Slovakia had been embroiled in a feud with Ukraine since January when oil deliveries were halted due to damage to the pipeline, which Ukrainian officials attributed to Russian drone attacks. Hungarian Prime Minister Viktor Orbán accused Ukraine of intentionally delaying repairs, a claim that Ukrainian President Volodymyr Zelenskyy denied. This dispute led Hungary to block the EU loan and Slovakia to withhold support for new sanctions against Russia until oil supplies resumed.
The flow of oil resumed early Thursday morning, which was welcomed by Slovak Prime Minister Robert Fico as “good news.” He expressed hope for improved relations between Ukraine and the EU, thanking the European Commission and Hungary for their roles in resolving the issue.
Political Dynamics and Implications
The EU had initially planned to use frozen Russian assets as collateral for the loan; however, this option was blocked by Belgium, where most of the assets are held. In December, Hungary, Slovakia, and the Czech Republic had agreed not to obstruct EU borrowing for Ukraine, provided they were not required to participate in the scheme. Orbán's subsequent reversal on this agreement, amid his electoral campaign, angered other EU member states.
The ongoing conflict has highlighted the differing energy dependencies within the EU, as Hungary and Slovakia continue to rely on Russian oil, unlike most of their European counterparts. This reliance has complicated their positions regarding sanctions against Russia and support for Ukraine.
Criticism and Opposition
Critics of Hungary's actions, including various EU leaders, have expressed frustration over the country's repeated blocking of aid to Ukraine. The situation has raised concerns about Hungary's commitment to EU solidarity in the face of Russian aggression. Fico's skepticism regarding the pipeline damage further complicates the narrative, as he continues to question the motives behind the geopolitical tensions.
What's Next
With the loan package now approved, disbursements are expected to begin shortly, providing much-needed support to Ukraine. The EU is also poised to address the sanctions against Russia, which have been stalled due to the energy dispute. As the situation evolves, the dynamics between Ukraine, Hungary, and Slovakia will remain critical in shaping the EU's collective response to the ongoing conflict.
