HeadlinesBriefing favicon HeadlinesBriefing.com

EU Moves Toward $106 Billion Ukraine Loan After Orban Blockade

New York Times Top Stories •
×

EU ambassadors gathered in Brussels to break a months‑long stalemate over a $106 billion loan for Ukraine. The package, roughly 90 billion euros, has been stalled since February by Hungary’s Viktor Orban, who linked approval to repairs on the Druzhba oil pipeline that runs through Ukraine to Hungary and Slovakia. With Orban’s electoral defeat, officials expect the impasse to end.

Top diplomat Kaja Kallas told a Luxembourg foreign‑ministers meeting that the funding is essential for Kyiv to purchase air‑defence systems and other military gear as Russia’s fifth‑year invasion grinds on. The loan carries no interest and would be repaid only if Russia pays reparations, meaning the EU budget bears the cost while Hungary, the Czech Republic and Slovakia remain exempt from contributions.

If ambassadors endorse the proposal on Wednesday, disbursement could begin within weeks, bolstering Ukraine’s depleted war chest and signalling that European unity can withstand nationalist roadblocks. The decision also underscores the EU’s willingness to leverage its shared budget for strategic security objectives.