EU approves $106 billion loan package for Ukraine after Hungary's veto lifted

BRUSSELS — The European Union approved a 90-billion-euro ($106-billion) loan package to assist Ukraine with its economic and military needs for two years, following Hungary's decision to lift its veto. This approval came after oil began flowing through a key pipeline to Hungary and Slovakia, resolving months of political deadlock. European Council President António Costa stated, "Promised, delivered, implemented," emphasizing the urgency of advancing Ukraine's EU membership aspirations.

Ukrainian President Volodymyr Zelenskyy expressed gratitude for the support, stating, "We will work to make sure the funds are delivered as soon as possible. This will strengthen, of course first of all our army, Ukrainian forces, and allow us to boost production." The resumption of oil deliveries through the Druzhba pipeline, which had been halted due to damage blamed on Russian drone attacks, was welcomed by Slovak Prime Minister Robert Fico as "good news."

The political breakthrough for the loan package follows Hungary's earlier obstruction, which had angered EU partners after it reneged on a December agreement to facilitate funding. The EU also approved new sanctions against Russia, which had been stalled due to Hungary and Slovakia's opposition. These sanctions target over 40 ships involved in illicit oil transport and impose asset freezes on around 60 Russian entities.

The situation highlights the fragility of EU decision-making, often held hostage by national interests requiring unanimous votes. Calls for majority voting have intensified among EU officials, as the bloc navigates complex geopolitical dynamics. Hungary's nationalist Prime Minister Viktor Orbán, recently defeated in elections, had accused Ukraine of delaying pipeline repairs, a claim Zelenskyy denied.

What to watch: The upcoming EU summit will likely address the implications of the loan package and further sanctions against Russia, as well as the ongoing discussions about Ukraine's EU membership.