The European Union has given final approval to a €90 billion loan for Ukraine, part of a larger G7 initiative to support the country's war-torn economy. The decision came after Hungary lifted its veto, which had blocked the measure for months. The loan is backed by profits from frozen Russian central bank assets held in the EU.
Hungary's Prime Minister Viktor Orbán, who has been a frequent critic of EU support for Ukraine, had previously blocked the loan over concerns about the use of frozen Russian assets. However, after negotiations, Budapest agreed to the deal, allowing the EU to proceed. The loan is part of a broader G7 commitment to provide Ukraine with up to $50 billion in assistance.
The EU's approval marks a significant step in providing long-term financial stability for Ukraine, which has been struggling with a severe budget deficit due to the ongoing war with Russia. The funds are expected to be disbursed in tranches, with the first payment likely in the coming months.
European Commission President Ursula von der Leyen welcomed the decision, stating that it demonstrates the EU's unwavering support for Ukraine. The loan will be used to cover essential government spending, including salaries, pensions, and infrastructure repairs.
