European Union countries have unanimously approved a loan for war-torn Ukraine worth €90 billion ($105 billion) and new sanctions on Russia, after Hungary had lifted its opposition, EU top diplomat Kaja Kallas announced.
“Russia’s war economy is under growing strain, while Ukraine is getting a major boost,” Kallas wrote on X on Thursday.
“We will provide Ukraine what it needs to hold its ground, until (Russian President Vladimir) Putin understands his war leads nowhere,” she said.
Thursday’s move formalizes an agreement reached earlier by EU members to resolve a months-long dispute between Kiev and Budapest over halted Russian oil deliveries via the Druzhba pipeline, which runs through Ukraine to Hungary and Slovakia.
Hungarian Prime Minister Viktor Orbán had accused Ukraine of blocking the resumption of Russian oil supplies via the pipeline for political reasons ahead of Hungary’s parliamentary elections, which he lost decisively.
Kiev rejected the allegation, saying the pipeline required repairs following Russian airstrikes in January. Ukrainian President Volodymyr Zelensky announced earlier this week that the pipeline was repaired.
Earlier on Thursday, Slovakia confirmed that Russian oil is again reaching the country.
The funding is intended to cover Ukraine’s most urgent economic and military needs and enable the country to continue its defensive struggle against Russia.
The European Commission hopes to disburse the first tranche of €45 billion by the end of June, with a further €45 billion to follow next year.
From the €90 billion to be made available to Ukraine, one-third is earmarked for budgetary support while two-thirds, or €60 billion, is intended for defence-related expenditure.
In addition, the EU approved to the bloc’s 20th package of sanctions on Russia, which aims to further limit Moscow’s revenues from energy exports and puts more restrictions on the arms industry.