Approval follows restored pipeline flows and ends weeks of delays tied to energy tensions between Ukraine and Central European states.
By yourNEWS Media Newsroom
The European Union has approved a major financial assistance package for Ukraine after Hungary withdrew its opposition, clearing the way for funds to begin flowing to Kyiv.
Officials said the package, valued at approximately $106 billion, is intended to support Ukraine’s economy and defense needs over the next two years. The final approval came after prolonged delays tied to disputes over energy supplies affecting Hungary and Slovakia.
Cypriot Finance Minister Makis Keravnos announced the decision, stating that the Council had completed the necessary steps to authorize disbursement. “Today the Council approved the final element needed to allow for the disbursement of the 90-billion-euro loan for Ukraine,” he said, adding that payments would begin as soon as possible to address urgent budgetary needs.
The breakthrough followed the resumption of oil deliveries through the Druzhba pipeline, which supplies Hungary and Slovakia via Ukrainian territory. According to Slovak Economy Minister Denisa Saková, the flow restarted early Thursday morning after a three-month interruption.
The disruption had triggered a diplomatic standoff, with both Hungary and Slovakia citing halted energy supplies as justification for blocking the EU loan package and additional sanctions targeting Russia. Ukrainian authorities attributed the earlier pipeline damage to Russian drone activity, while Hungarian officials disputed that explanation.
Slovak Prime Minister Robert Fico welcomed the restoration of supply, calling it “good news” and expressing hope for improved relations between Ukraine and the EU. He also acknowledged the involvement of the European Commission and Hungary in resolving the dispute.
Hungary’s outgoing leader Viktor Orbán had previously accused Ukraine of delaying repairs, a claim rejected by Ukrainian President Volodymyr Zelenskyy. Fico also questioned whether the pipeline had been damaged, suggesting the situation had been influenced by broader geopolitical tensions.
The restored oil flow removed a key obstacle that had prevented agreement among EU member states. Hungary had blocked the loan despite an earlier December arrangement allowing the EU to raise funds on international markets without requiring participation from all members. Slovakia had similarly withheld support for new sanctions until the energy issue was resolved.
In parallel with the financial package, the EU approved additional sanctions against Russia related to the ongoing conflict in Ukraine. Those measures had been prepared earlier but were delayed due to objections from Hungary and Slovakia during the dispute.
The assistance package is designed to stabilize Ukraine’s economy and support its defense as the conflict with Russia continues into its fifth year. EU officials had initially planned to use frozen Russian assets as backing for the loan, but that proposal was not adopted after opposition from Belgium, where a significant portion of the assets is held.
The agreement was finalized as EU leaders convened for a summit in Cyprus, marking a coordinated effort to resolve internal divisions and move forward with support for Ukraine.
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