A 90 billion euro ($105 billion) European Union loan for Ukraine, previously blocked by Hungary under Prime Minister Viktor Orban, may be revived following Orban’s election defeat this month and the resumption of Russian oil deliveries to Hungary. Last December, EU leaders agreed to jointly borrow funds to support Ukraine’s defense against Russia, potentially using frozen Russian assets as security for repayment.
The EU plans to offer interest-free loans for the years 2026-2027, relying on borrowing from capital markets secured by the EU budget. Hungary, Slovakia, and the Czech Republic, which are seen as aligned with Moscow, obtained exemptions and will not participate in the borrowing.
Ukraine is not expected to repay the loan from its own resources; repayment is scheduled only when Russia pays reparations after the conflict. Approximately 210 billion euros of Russian central bank assets are frozen in the EU, which may be used for repayment. The loan scheme aims to support Ukraine without legally confiscating these frozen funds.
The 90 billion euros is intended to cover two-thirds of Ukraine’s total needs for the next two years, which are estimated at 135 billion euros. Ukraine will receive 45 billion euros in both 2026 and 2027, with 28 billion euros allocated for military expenses and 17 billion euros for general budget needs. Other developed countries sympathetic to Ukraine are expected to provide the remaining funding for 2026.
Initially, the joint borrowing faced challenges, particularly from Hungary. However, after Orban’s election loss and the repair of the Druzhba pipeline, which had disrupted oil deliveries, prospects for the loan’s approval have improved. The new prime minister, Peter Magyar, indicated he would not oppose the loan disbursement.
With information from Reuters
