The EU has officially approved a €90 billion ($106 billion) loan for Ukraine on Thursday alongside its 20th sanctions package against Russia, after Hungary and Slovakia lifted their veto.
The decision was adopted by written procedure by the Council of the EU, following agreement among member states to amend the bloc’s long-term budget for 2021-27, according to local outlet European Pravda.
The council said in a press release on Thursday afternoon that “the final key piece of legislation” has been adopted.
“Today the Council approved the final element needed to allow for the disbursement of the €90 billion loan for Ukraine… Loan disbursements will start flowing as soon as possible, providing vital support for Ukraine’s most pressing budgetary needs,” Makis Keravnos, Cyprus’s finance minister, was quoted as saying in the press release.
The move clears the way for Ukraine to receive the funds in 2026-27, as Kyiv continues to face significant wartime financing needs.
Budapest has previously blocked the €90 billion loan over the Druzhba pipeline, demanding that Kyiv repair and restart the flow of Russian oil, while Slovakia said it would lift its veto on the EU’s 20th sanctions package if the oil flow was restored.
The pipeline reopened on Wednesday, April 22.
The latest sanctions package marks the EU’s 20th round of restrictive measures against Russia since the start of its full-scale invasion of Ukraine.
Earlier this week, European officials signaled that the €90 billion package was close to approval, with Valdis Dombrovskis, the European commissioner for economy and productivity, saying the EU expected to begin disbursing funds by late May or early June.
The funding is set to cover roughly two-thirds of Ukraine’s external financing needs for 2026-27, with the remaining gap expected to be filled by G7 partners, the International Monetary Fund (IMF), and bilateral contributions.
President Volodymyr Zelensky is set to attend an informal EU meeting in Cyprus on Thursday to discuss the €90 billion loan and support for Ukraine.