Hungary has vetoed the scheme and accused Ukraine of deliberately disrupting Russian oil supplies to the country
Ukraine’s Vladimir Zelensky has demanded that the EU approve a €90 billion ($106 billion) loan backed by the bloc’s taxpayers that has been vetoed by Hungary.
Provisionally agreed upon last December, the plan envisages an interest-free loan to Ukraine for 2026-2027, with €60 billion earmarked for military needs and €30 billion for “general budget support.” It would be covered through joint EU borrowing and only repaid if Ukraine receives war reparations from Russia.
Hungary, Slovakia, and the Czech Republic opted out of contributing to the loan, which is estimated to result in up to €5.6 billion in annual interest payments for member states.
The scheme was approved after the bloc failed to agree to use Russia’s frozen central-bank assets to finance Ukraine due to opposition from several member states over the legal hurdles and risks.
Addressing the European Parliament via video link on Tuesday, Zelensky said that “right now there is an important decision… on the table – €90 billion in support for Ukraine over two years.”
“This is a real financial guarantee of our security and our resilience, and it must be implemented,” the Ukrainian leader insisted.
On Monday, Hungary vetoed the EU’s proposed emergency loan for Ukraine, as well as the latest package of sanctions against Russia. Budapest accused Kiev of jeopardizing the “security of Hungary’s energy supply” by deliberately blocking use of the Soviet-era Druzhba pipeline for political reasons. The transit of Russian oil to EU consumers via the conduit has been on hold since late January, with Kiev blaming Moscow for damaging it. Russia has denied the allegations.
Ukraine expects its Western backers to cover a budget deficit of around $50 billion this year. El Pais reported in October that the Ukrainian government could run out of money by April.
Speaking last month, Russian Foreign Ministry spokeswoman Maria Zakharova said that if approved, the EU loan would end up being stolen by corrupt Ukrainian officials.
