The European Union is actively working on a €90 billion loan for Ukraine, despite ongoing political disputes. Current efforts are focused on the technical preparations necessary for disbursement.
A source familiar with the discussions indicated that the EU is prioritizing this financial support, aligning with the mandate established by the European Council in December. Additional amendments to the multiannual financial framework must be approved soon to facilitate market borrowing.
In light of potential roadblocks from Hungary’s Prime Minister Viktor Orbán and Slovakia’s Prime Minister Robert Fico, the EU has developed a contingency plan. According to Politico, this plan aims to ensure that Ukraine receives the promised funds despite any objections from these leaders.
Next week, efforts will be made to persuade the leaders of Hungary and Slovakia, but a “Plan B” is in place. This alternative strategy involves direct bilateral loans from the Baltic states, Northern Europe, and the Netherlands, allowing Ukraine to access the initial €30 billion within the first half of the year without requiring unanimous consent from the entire EU.
Additionally, the Netherlands has committed to providing €3.5 billion annually to Ukraine through 2029.
While EU leaders reached an agreement on the loan in December 2025, further legislative approval is necessary for the final disbursement. This approval is currently being obstructed by Budapest and Bratislava.
Orbán is stalling the process due to concerns over the suspension of Russian oil supplies via the Druzhba pipeline. Ukraine has claimed that the supply halt resulted from Russian attacks, whereas Hungary and Slovakia reference “satellite images” and are seeking verification of the situation. Hungary even dispatched a pseudo-delegation to Kyiv.
Ukrainian President Volodymyr Zelensky has expressed reluctance to restore the Druzhba pipeline. However, he noted that EU officials believe that doing so could help lift the Hungarian veto.
Zelensky explained that the resumption of transit could be achieved within six weeks. Nevertheless, he wishes for the requirement to restore the pipeline in exchange for unblocking the €90 billion from the EU to be formally documented.
The European Union is progressing with a €90 billion loan for Ukraine, facing political hurdles from Hungary and Slovakia. A contingency plan is in place to ensure funding despite potential blockages.