EU Approves Critical €90bn Loan for Ukraine Amid Pipeline Resolution

Wed Apr 22 2026 12:36:57 GMT+0000 (Coordinated Universal Time)

The European Union has concluded negotiations on a €90 billion loan essential for Ukraine's recovery, overcoming previous deadlocks linked to oil supply disputes.

European Union ambassadors have met in Cyprus to finalize a pivotal €90 billion financial support package for Ukraine. The agreement follows the resolution of an oil supply dispute involving Hungary, clearing the way for funding crucial for Ukraine's defense and recovery efforts. With a change in Hungary's leadership and the restoration of oil flows through the Druzhba pipeline, EU officials express optimism regarding the loan's timely approval.

European Union ambassadors are meeting in Cyprus with high hopes that a €90 billion (£78 billion) loan, seen as vital support for Ukraine, can finally be disbursed after months of deadlock. The funding was initially agreed upon last December, but a veto from Hungary's Viktor Orbán in February, tied to oil supply issues, prevented its release.

Hungarian Prime Minister Orbán had insisted that oil deliveries through the Druzhba pipeline resume before the loan could be paid out. Ukraine reported damage to the pipeline due to Russian strikes, causing a halt in oil supplies. However, EU officials believe the deadlock will soon end, as repairs to the pipeline have been completed.

Orbán’s recent electoral defeat has further shifted the dynamics. His replacement, Péter Magyar, has indicated a desire to improve relations with the EU, which may facilitate the approval process for the loan. EU foreign policy chief Kaja Kallas expressed optimism, stating, We expect some positive decisions... on the €90 billion loan. Ukraine really needs this loan, and it's also a sign that Russia cannot outlast Ukraine.

The Ukrainian Deputy Prime Minister, Taras Kachka, emphasized the critical nature of this funding, referring to it as a matter of life and death for Ukraine. He noted that two-thirds of the funds would be allocated to bolster Ukraine's defense capabilities.

Hungarian energy company Mol announced that Russian oil supplies would start flowing again through the Druzhba pipeline on Wednesday, marking an important step forward in resolving the deadlock. Orbán had stated that the approval for the loan would not be obstructed once oil deliveries resumed.

Additionally, discussions between Ukrainian President Volodymyr Zelensky and EU leaders have reinforced the commitment to moving forward with the loan, as Zelensky noted, There can be no grounds for blocking it any more.

If approved, the loan is expected to take several weeks before the funds are available in Kyiv, as Ukraine continues to navigate the complexities of its wartime economy and recovery.