EU approves a massive loan package to help Ukraine

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Along with a loan package, the EU has approved new sanctions against Russia over its war on Ukraine.
Along with a loan package, the EU has approved new sanctions against Russia over its war on Ukraine.

The European Union has approved a massive loan package to help Ukraine meet its economic and military needs for the next two years, the bloc’s Cypriot presidency says, after Hungary lifted its veto.

The EU on Thursday also approved a new raft of sanctions against Russia over its war on Ukraine. 

The measures were prepared in early 2026 and set to be announced in February to mark the fourth anniversary of the conflict, but Hungary and Slovakia opposed the move.

Hungary and Slovakia have been locked in a feud with Ukraine since Russian oil deliveries to the two EU countries were halted in January after a pipeline was damaged. 

Ukrainian officials blamed the damage on Russian drone attacks.

Ukraine desperately needs the 90-billion-euro ($A147 billion) loan package to prop up its war-ravaged economy and help keep Russian forces at bay. 

Hungary angered its EU partners by reneging on a December deal to provide the funds.

“Today the council approved the final element needed to allow for the disbursement of the 90-billion-euro loan for Ukraine,” Cypriot Finance Minister Makis Keravnos said. 

“Loan disbursements will start flowing as soon as possible, providing vital support for Ukraine’s most pressing budgetary needs.”

AP