EU ambassadors set to approve €90 billion loan for Ukraine

Wednesday 22 April 2026 - 17:20

By: Dakir Madiha

EU ambassadors set to approve €90 billion loan for Ukraine

Ambassadors of the European Union are expected to approve a €90 billion loan package for Ukraine, removing a key financial obstacle as Kyiv continues to resist the Russia invasion. The vote is scheduled at the Committee of Permanent Representatives in Brussels and follows a shift in Hungary’s political landscape that ended a prolonged blockade.

The financing package had been stalled for two months due to opposition from Viktor Orbán, who conditioned approval on the restoration of Russian oil flows through the Druzhba pipeline. That condition was met after repairs were completed, allowing shipments to resume. Orbán, now serving in a caretaker role, confirmed that Hungary would withdraw its objection once deliveries restarted, clearing the way for consensus among EU member states.

EU officials signaled that the measure would pass without debate, reflecting broad agreement. Kaja Kallas indicated that positive decisions were expected, with final approval potentially completed through a written procedure within 24 hours of the ambassadors’ vote.

The financial support will be distributed over two years. According to Valdis Dombrovskis, €45 billion is planned for 2026 and another €45 billion for 2027. Of the total, €28 billion is allocated to military needs, while €17 billion will support Ukraine’s general budget. The first disbursement could reach Kyiv by late May or early June.

The loan will be financed through EU borrowing on capital markets and repaid using proceeds generated from approximately €210 billion in frozen Russian sovereign assets held in European financial institutions. Ukraine would only be required to repay the loan if Russia provides war reparations, structuring the mechanism as conditional support tied to future settlements.

The package addresses a significant portion of Ukraine’s financing needs. The International Monetary Fund estimates that the country requires €136 billion for 2026 to 2027, meaning the EU plan would cover roughly two thirds of that amount. Additional contributions are expected from partners including Canada, Japan, the United Kingdom, and Norway.

The breakthrough follows political change in Hungary, where Péter Magyar secured a decisive electoral victory, ending Orbán’s long tenure. The outcome has been interpreted as a shift toward closer alignment with EU policy on Ukraine, removing a major source of internal division within the bloc.