EU backs €90bn Ukraine loan as Hungary lifts veto

European Union ambassadors have agreed a €90 billion loan for Ukraine, alongside a new package of sanctions against Russia.

The decision was approved on Wednesday without debate. A written procedure is now under way, allowing member states to raise objections until Thursday afternoon. If none are lodged, the measures will be formally adopted.

The agreement follows Hungary’s decision to drop its veto. Prime minister Viktor Orban had blocked the loan in protest over halted Russian oil supplies via the Druzhba pipeline, which serves Hungary and Slovakia.

Oil flows were disrupted earlier this year after damage to the pipeline on Ukrainian territory. Ukraine has now completed repairs, allowing supplies to resume. This appears to have met Hungary’s key condition forr lifting its opposition.

The dispute had also delayed a fresh round of EU sanctions on Russia, which were approved alongside the loan.

Ukraine is expected to need the funds by early June as it continues to defend itself against Russia’s invasion.

^{© Filippo MONTEFORTE / AFP}