Obstacles Removed for EU's €90 Billion Aid Package to Ukraine, First Tranche Expected by Late May
With the political changes in Hungary removing the final obstacles, the EU is about to formally approve a large-scale €90 billion loan plan to aid Ukraine, with the first funds expected to arrive in late May or early June. European Commissioner for Economy Dombrovskis confirmed on April 21st that Ukraine's funding needs through 2026 have been covered.
He revealed that the €90 billion loan will be disbursed in two years – €45 billion in 2026 and another €45 billion in 2027, of which €28 billion will be used for military support and €17 billion for general budget support.
The progress of this loan plan is due to changes in Hungary's domestic political situation. Previously, the pro-Russian Hungarian Prime Minister Orbán had long obstructed EU aid to Ukraine. In the parliamentary elections on April 12th, Orbán lost, and the leader of the winning Civic Alliance, Márton Peter, has stated he will no longer block EU funding to Kyiv. On April 22nd, the EU Ambassadorial Conference will review the final budget revisions needed to launch the loan.
Dombrovskis said the first tranche is likely to be disbursed in late May or early June. EU officials revealed that technical documents related to the loan agreement are being urgently negotiated with the Ukrainian side, including a macro-financial assistance memorandum of understanding, an updated Ukrainian plan, and bilateral loan agreements.
Meanwhile, EU High Representative for Foreign Affairs and Security Policy Kallas called on countries to quickly reach an agreement on the 20th round of sanctions against Russia. On the eve of the EU Foreign Ministers' meeting, she stated: "Ukraine really needs this loan, and it is also a signal to Russia – it cannot exhaust Ukraine in a war of attrition."