The European Union has moved closer to approving a €90 billion (£78 billion) financial package for Ukraine after months of political deadlock linked to energy disputes and internal EU divisions.
EU ambassadors meeting in Cyprus gave preliminary backing to the loan, alongside a new round of sanctions against Russia. The decision is expected to be formally signed off by EU leaders at an upcoming summit.
The breakthrough came after Ukraine confirmed it had restored oil flows through the Druzhba pipeline into Hungary and Slovakia—an issue that had previously triggered a veto threat from Hungarian leader Viktor Orbán.
Orbán had blocked progress on the loan in February, demanding that oil supplies resume following earlier disruptions caused by damage from Russian strikes. Ukraine says repairs have now been completed and pumping restarted.
EU officials say the financial package is critical for Kyiv, with two-thirds earmarked for defence and the remainder for economic stability. Ukrainian leaders have described the funding as essential for national survival amid the ongoing war with Russia.
EU foreign policy chief Kaja Kallas said the agreement signals that Russia “cannot outlast Ukraine,” while Ukrainian officials welcomed the progress as a major diplomatic win.
Although political approval is nearing completion, it may still take weeks before funds are fully disbursed to Ukraine.
