BRUSSELS, April 22 – A massive European Union financial assistance package worth $105 billion for Ukraine may finally move forward after months of delays caused by Hungarian opposition under former Prime Minister Viktor Orban. The loan program gained new momentum following Orban’s electoral defeat earlier this month and the restoration of Russian oil shipments to Hungary through Ukrainian territory.
EU leadership approved the joint borrowing initiative last December to provide financial support for Ukraine’s defense efforts against Russia through 2027, with a unique structure that would ultimately make Moscow responsible for repayment through frozen Russian assets.
The lending mechanism will operate through interest-free loans distributed during 2026 and 2027, funded by EU borrowing in capital markets and supported by available budget capacity – the gap between maximum possible member contributions and current spending obligations.
Three nations with governments considered more aligned with Moscow – Hungary, Slovakia, and the Czech Republic – negotiated exemptions from participating in the collective borrowing arrangement.
Ukraine will not be required to repay the funds from its own treasury. Instead, repayment is structured to occur only when Russia provides war reparations following the conflict’s conclusion.
Approximately 210 billion euros in frozen Russian central bank assets held within EU jurisdiction could serve as the repayment source. This approach was specifically designed to utilize Russian funds for Ukrainian assistance without directly seizing the money, avoiding what officials considered legally problematic confiscation.
The 90 billion euro package is intended to address two-thirds of Ukraine’s projected 135 billion euro requirements over the next two years. The funding will be distributed as 45 billion euros in both 2026 and 2027.
Annual allocations will designate 28 billion euros for military expenditures and 17 billion for general governmental budget requirements.
Brussels anticipates that other supportive developed nations will contribute the remaining funding gap, with commitments already secured for 2026.
The joint EU borrowing concept initially appeared unachievable due to unanimity requirements and Orban’s resistance. Hungary, Slovakia, and the Czech Republic eventually agreed to allow the program after EU leaders guaranteed no financial impact on their countries.
Hungary subsequently blocked the loans when Russian oil deliveries through the Druzhba pipeline crossing Ukrainian territory ceased. Kyiv attributed the pipeline shutdown to damage from Russian military strikes.
Approval prospects improved significantly after Orban’s April 12 electoral loss, with incoming Prime Minister Peter Magyar indicating he would not oppose the disbursements. Additionally, Ukrainian crews have repaired the Druzhba pipeline, with oil flows expected to resume shortly.
