The European Union gave its final approval last week to the long-delayed €90bn loan for Ukraine alongside a 20th package of sanctions on Russia after months of political deadlock.
EU ambassadors travelled to a European Council summit in Cyprus in high spirits after Hungary lifted its blockade on the loan and sanctions package, ending a standoff that exposed how a single veto can hold the EU’s decision-making hostage, following Viktor Orbán’s veto in February.
The resolution of this deadlock comes at a critical moment, as Russia’s war enters its fourth year and continues to strain Ukraine’s public finances. The loan is expected to provide two-thirds of Ukraine’s financial needs over the 2026-27 period.
By addressing urgent budgetary and defence industrial needs, the funding also reinforces the conditions tied to Ukraine’s EU path, including commitments to the rule of law and anti-corruption reforms, while strengthening military resilience.
High Representative for Foreign Affairs and Security Policy Kaja Kallas stressed the importance of such a development:
"Ukraine really needs this loan and it's also a sign that Russia cannot outlast Ukraine. Russia’s war economy is under growing strain, while Ukraine is getting a major boost.”
President of Ukraine Volodymyr Zelenskyy weighed the implications:
“Today is an important day for our defence and for our relations with the European Union. The European support loan for Ukraine has been unblocked - €90 billion over two years. It matters that Ukraine is securing this level of financial certainty – after more than four years of full-scale war.”
Despite the breakthrough, Karin Karlsbro MEP (Liberalerna, SE) standing rapporteur for the EU financial assistance to Ukraine, warned that the delays exposed deeper structural weaknesses:
"Europe has finally delivered crucial support to Ukraine. But the delays, under pressure linked to Russian oil, expose serious weaknesses in our decision-making. Europe must be better prepared. We should already be working on the next package, financed through frozen Russian assets. Supporting Ukraine is the most important investment in Europe."
As Ukraine continues to hold the front lines of European defence, sustained financial and political support remains essential, not only for its resilience but for its long-term EU accession path.
The episode has also reignited debate over the EU’s decision-making structures. The weeks-long blockage highlighted how a single veto can delay critical action, raising questions about the Union’s ability to respond swiftly in times of crisis.
If Europe is to act as a credible geopolitical actor, it must ensure that support for Ukraine, and its own security, cannot be held hostage again.
Read what liberals had to say about it: