'Deadlock over': EU agrees on $105B loan for Ukraine after months of delay

The European Union on Thursday finalized a long-delayed €90 billion (about $105 billion) financial support package for Ukraine, ending months of political deadlock and paving the way for disbursements to begin in the second quarter of 2026.

The agreement, adopted by the EU Council, aims to address Ukraine's urgent budgetary needs and strengthen its defense industrial capacity through 2026 and 2027.

Of the total amount, €30 billion will be allocated for macroeconomic support, while €60 billion will be directed toward defense-related investments, including procurement of military equipment.

The financing will be raised through EU borrowing on capital markets and backed by the bloc's budget. Repayment is expected to come from future reparations due by Russia to Ukraine.

According to the statement, €45 billion of the total loan will be made available in 2026, including €28.3 billion earmarked specifically for Ukraine's defense industrial capacity.

European Council President Antonio Costa described the move as part of a broader strategy to secure a "just and lasting peace," combining strengthened support for Ukraine with "increased pressure" on Moscow.

Alongside the financial package, the EU also adopted its 20th round of sanctions against Russia, targeting key sectors such as energy, finance, and defense in an effort to weaken its war economy.

"Deadlock over. The EU just cleared the way for the €90-billion-loan for Ukraine and the 20th sanctions package," EU foreign policy chief Kaja Kallas wrote on US social media company X.

The packages faced delays due to internal disagreements, including a veto by outgoing Hungarian Prime Minister Viktor Orban. Following a change in leadership in Budapest, objections were lifted, allowing negotiations to conclude swiftly.

The decision was adopted with the backing of 24 member states under an enhanced cooperation framework, the statement added.

European Commission President Ursula von der Leyen also welcomed the agreement, saying it demonstrates the EU's commitment to "double down" on support for Ukraine while intensifying pressure on Russia.