The European Union has formally approved a €90 billion loan package for Ukraine alongside a new round of sanctions targeting Russia, marking a coordinated effort to reinforce Kyiv’s war-time finances while increasing economic pressure on Moscow.
The decision was confirmed by the Cypriot presidency of the EU Council in a post on X, ending weeks of political deadlock within the bloc. The approval follows Hungary’s decision to withdraw its veto, clearing the final obstacle to the agreement.
European Council President António Costa said the EU’s approach is built on two parallel objectives: strengthening Ukraine’s capacity to sustain its defence and intensifying economic restrictions on Russia. He said progress had been made on both fronts with the latest agreement.
EU foreign policy chief Kaja Kallas also welcomed the development, describing the breakthrough as the end of a “deadlock” that had delayed financial and political support for Kyiv. She said Russia’s wartime economy is facing increasing strain, while Ukraine is set to receive a significant financial boost under the new arrangements.
The €90 billion loan is intended to support Ukraine’s state functions, economic stability and military resilience as the conflict continues. EU officials have previously described the funding as essential to maintaining Ukraine’s ability to operate under sustained wartime pressure.
Alongside the financial package, EU member states also signed off on a new set of sanctions targeting Russian individuals, entities and sectors linked to the ongoing invasion. The measures are part of a broader EU strategy aimed at limiting Russia’s access to critical resources and reducing its capacity to sustain military operations.
The approval had already been anticipated after EU ambassadors reached agreement earlier in the week, following Hungary’s decision to lift its opposition. Diplomatic sources indicated that negotiations had focused on securing guarantees and addressing Budapest’s concerns before the final green light was given.
Ukrainian President Volodymyr Zelensky is currently in Cyprus, where he is expected to meet European Union leaders, including Irish Taoiseach Micheál Martin. Discussions are expected to focus on continued financial support, military assistance and long-term reconstruction planning.
EU officials have framed the latest decision as part of a sustained effort to maintain unity among member states while responding to the evolving conflict. The loan and sanctions package is expected to be implemented in stages, with further details on disbursement and enforcement to follow in the coming weeks.
