Ukrainian President Volodymyr Zelensky has welcomed the European Union’s approval of a €90bn loan for Ukraine, which had previously been delayed due to a veto by Hungary’s outgoing prime minister Viktor Orbán.
“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 – EUR90 billion over two years,” Mr Zelensky said on X, reports RTE.
“It matters that Ukraine is securing this level of financial certainty – after more than four years of full-scale war,” he added, while calling for the first portion of the funds to be released by May or June.
The European Union formally approved the long-promised loan to Ukraine, along with a new sanctions package targeting Russia, reports RTE.
The funding is expected to meet around two-thirds of Ukraine’s financial needs over the next two years. Economists had warned the country could begin running out of money by June without the EU support, potentially forcing severe cuts to public services.
“While Russia doubles down on its aggression, we are doubling down on our support to the brave Ukrainian nation enabling Ukraine to defend itself and putting pressure on Russia’s war economy,” European Commission President Ursula von der Leyen said, reports RTE.
“The EU’s strategy to achieve a just and lasting peace in Ukraine rests on two pillars: strengthening Ukraine; increasing pressure on Russia. Today we moved forward on both,” European Council President Antonio Costa said in a post on X, reports RTE.
The development comes as Mr Zelensky arrived in Cyprus for a meeting with European Union leaders, including Taoiseach Micheál Martin.
The Ukrainian president said the funds would be used for “arms production, the procurement of necessary weapons from partners that we do not yet produce in Ukraine, and the preparation of our energy sector and critical infrastructure for the next winter”, reports RTE.
“During meetings in Cyprus, we will also discuss with partners further sanctions pressure on Russia over this war. The 20th package [of sanctions] has been unblocked, and it must be followed by other sanctions steps,” said Mr Zelensky on X, reports RTE.
Russia repeatedly targeted Ukraine’s power grid and energy infrastructure over the winter, leaving millions without heat or electricity during the harshest period of the four-year conflict, with temperatures dropping to as low as -20C.
“These resources will help us sustain our power system, protect critical infrastructure, and accelerate recovery,” Ukrainian Energy Minister Denys Shmygal said on X, reports RTE.
Only half of the €90bn loan will be distributed this year, with the remainder scheduled for 2027. Most of the funding is allocated to military spending, while approximately €17bn per year will go towards general budget needs such as healthcare and education.
“Deadlock over,” EU foreign policy chief Kaja Kallas posted online, reports RTE.
“Russia’s war economy is under growing strain, while Ukraine is getting a major boost,” reports RTE.
EU ambassadors had already given approval to the loan and sanctions package yesterday after Hungary lifted its veto, clearing the way for formal adoption.
The approval of the loan, which had been delayed for several months due to Hungary’s veto, provides Ukraine with crucial financial support and helps avoid deep public spending cuts, though economists and officials say additional funding may still be required to meet military demands this year, reports RTE.
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