Ukrainian President Volodymyr Zelensky has welcomed the European Union’s approval of a €90bn loan for Ukraine, which had previously been blocked 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, urging for the first tranche to be disbursed by May or June, reports RTE.
The European Union has now formally approved the pledged loan to Ukraine, alongside a fresh round of sanctions targeting Russia.
The funding is expected to meet roughly two-thirds of Ukraine’s financial requirements over the next two years. Economists had warned that without the EU releasing the funds by June, Ukraine could begin to run out of money, forcing severe reductions in public services, reports RTE.
“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 directed towards “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”.
“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 throughout the winter, leaving millions without heat or electricity during one of the coldest periods of the four-year invasion, 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 will be released to Ukraine this year, with the remaining funds scheduled for 2027. Most of the loan will be allocated to military expenditure, while about €17bn annually 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.”
EU ambassadors had already given their backing to the loan and sanctions package the previous day after Hungary withdrew its veto, clearing the path for formal approval, reports RTE.
The approval of the loan, which had faced months of delay due to Hungary’s veto, provides Kyiv with crucial financial relief, preventing severe cuts to public services, although economists and officials caution that additional funding may still be required to meet military demands this year, reports RTE.
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