Finance
EU Prepares Finalisation of Ukraine Loan and New Russia Sanctions, Cyprus Says
Published by Global Banking & Finance Review®
Posted on April 22, 2026
2 min readLast updated: April 22, 2026
Add as preferred source on GoogleQuick Summary
EU ambassadors on April 22 approved disbursement of a €90 billion loan to Ukraine and a new sanctions package on Russia after Hungary lifted its veto, following confirmation that the Druzhba oil pipeline will resume deliveries to Hungary and Slovakia.
EU Approves €90 Billion Ukraine Loan and New Russia Sanctions After Hungary Agreement
EU Loan Approval and Sanctions Package Overview
Background of the Loan and Sanctions
BRUSSELS, April 22 (Reuters) - EU ambassadors approved on Wednesday the disbursement of a promised 90 billion euro ($106 billion) loan to Ukraine as well as a new package of sanctions against Russia, after Hungary lifted its veto, the bloc's Cypriot presidency said.
The European Union's 27 member states are now expected to sign off on the deal by Thursday afternoon, a spokesperson for the Cypriot presidency added.
Hungary's Initial Opposition
The EU agreed last year on the loan to keep Ukraine liquid through 2026 and 2027. But Hungary refused to sign off on the deal as Russia-friendly Prime Minister Viktor Orban accused Ukraine of sabotaging the transit of Russian oil through a pipeline damaged by Russian attacks.
Impact on Sanctions Timeline
The spat had also delayed the new sanctions against Russia, which the EU had initially aimed to adopt to mark the fourth anniversary of Russia's full-scale invasion of Ukraine on February 24, 2022.
Resolution of the Dispute
The stumbling block was finally removed when Hungary's oil group MOL said on Wednesday it had been informed that the Ukrainian operator of the Druzhba pipeline was ready to resume crude oil transit to Hungary and Slovakia.
MOL said it expected the first shipments via the pipeline to arrive in Hungary and Slovakia by Thursday at the latest. Both countries remain reliant on Russia for much of their energy.
Political Changes in Hungary
Ukraine's prospects for receiving the loan had already improved when Orban lost Hungary's parliamentary election on April 12. The leader of the winning party, Peter Magyar, has said he will no longer block the EU funds for Kyiv, though he is only expected to take power next month.
(Reporting by Julia Payne, Lili Bayer, Andrew Gray and Sudip Kar-Gupta, editing by Bart Meijer and Gareth Jones)
Key Takeaways
- •EU ambassadors cleared the €90 billion Ukraine loan and sanctions package after Hungary lifted its veto thanks to resumed Druzhba pipeline transit (apnews.com).
- •Hungary had blocked the deal over halted oil flows via Druzhba but lifted the veto once Ukraine repaired the pipeline, enabling resumption of crude deliveries (apnews.com).
- •The €90 billion loan, agreed in December 2025 to support Ukraine through 2026–27, will be disbursed rapidly and includes support for defence and macroeconomic needs, backed by EU borrowing and repayable only upon Russian war reparations (consilium.europa.eu).
References
Frequently Asked Questions about EU prepares finalisation of Ukraine loan and new Russia sanctions, Cyprus says
1What is the total value of the EU loan approved for Ukraine?
The EU approved a loan of 90 billion euros (approximately $106 billion) for Ukraine.
2Why was the EU loan to Ukraine delayed?
The loan was delayed due to Hungary's veto, which was related to a dispute over the transit of Russian oil through Ukraine.
3What prompted Hungary to lift its veto on the Ukraine loan and Russia sanctions?
Hungary lifted its veto after receiving confirmation that crude oil transit via the Druzhba pipeline to Hungary and Slovakia would resume.
4When is the final EU approval of the Ukraine loan expected?
All 27 EU member states are expected to sign off on the deal by Thursday afternoon.