The European Union has granted final approval for a 90-billion-euro ($105bn) loan to Ukraine alongside a new package of sanctions against Russia, resolving a long-standing deadlock in Brussels. The decision follows the recent legislative defeat of Hungarian Prime Minister Viktor Orbán, whose administration had previously used its veto power to stall much of the bloc's support for Kyiv.
According to Al Jazeera, the breakthrough occurred after Hungary and Slovakia dropped their objections once Ukraine restarted oil flows through the damaged Druzhba pipeline. This development allows the EU to move forward with financial support at a time when the United States has largely reduced its support for Kyiv and eased sanctions on Russian oil exports due to the US-Israeli conflict involving Iran.
Ukrainian President Volodymyr Zelenskyy welcomed the news, stating on X that the approval is a significant milestone for the nation's defense. "Today is an important day for our defence and for our relations with the European Union. The European support loan for Ukraine has been unblocked – 90 billion [euros or $105bn] over two years," Zelenskyy said, according to Al Jazeera.
Zelenskyy further urged that the first portion of the funds be distributed by May or June to help address budget shortages four years into the Russian invasion.
A shift in Budapest
The approval of the funds coincides with a major political transition in Hungary. Following the April 12 elections, the Fidesz party, led by Viktor Orbán, lost its 16-year hold on power. The incoming government, led by Péter Magyar of the Tisza party, is scheduled to take office on May 9.
In an interview with La Tercera, Hungarian political analyst Rudolf Tamás Metz of the Hungarian Academy of Sciences suggested that Orbán’s tenure was marked by an excessive focus on symbolic foreign alliances, such as those with Donald Trump and Italy's Giorgia Meloni. Metz noted that the previous administration acted as a "stone in the shoe" for the EU by systematically blocking weapons and resources for Ukraine.
Magyar’s new administration is expected to pursue a more pro-European trajectory, aiming to distance Budapest from Russian influence. According to Metz, the Tisza party is currently exhibiting a "populist technocratic" approach to governance. This style combines anti-corruption and anti-elitist rhetoric with a heavy reliance on technical experts to manage sectors like healthcare and the environment.
While the new government promises to restore the rule of law and democratic checks and balances, Metz observed that Magyar is also using conciliatory gestures in parliamentary appointments to maintain institutional pragmatism. However, the incoming leader faces the challenge of maintaining his movement's momentum while establishing stable governing institutions.
Alongside the Ukraine loan, the EU's 27 member states approved the 20th package of sanctions against Moscow. Al Jazeera reports that these measures target Russia's energy, banking, and trade sectors, specifically focusing on the "shadow fleet" of tankers used to bypass oil export restrictions and curbing Russian cryptocurrency traders. The package also includes a ban on selling specific machinery to Kyrgyzstan to prevent it from being rerouted to Russia.
