EU approves macro-loan to Ukraine and sanctions on Russia after Orbán's defeat

Brussels / BarcelonaThe final agreement has been a long time coming, but Viktor Orbán's electoral defeat in Hungary has paved the way for the European Union to continue helping Ukraine and applying pressure on Russia. After Budapest lifted its veto, member states have agreed to send €90 billion in credit to Kyiv, according to diplomatic sources. This is crucial aid for the country at war, which has seen the United States under Donald Trump shut off the tap completely. Furthermore, European partners have processed the twentieth package of sanctions against the Kremlin, which had also been gathering dust for months and aims, among other things, to increase energy restrictions on Vladimir Putin's regime.

Orbán, who has continuously obstructed any initiative favorable to Ukraine and contrary to Russia, made the EU's macro-loan to Ukraine one of his main battlehorses in the election campaign. After the elections, however, the current acting Hungarian Prime Minister has opted to stop vetoing the dispatch of credit to Kyiv and negotiations with Moscow.

The far-right Hungarian leader claims that the trigger was Ukraine and Brussels' commitment to repair and restart the Druzhba oil pipeline, which connects Russia with Hungary, next Monday. Nevertheless, even before the Hungarian elections, the European Union had assured it was willing to bear the cost of the repair and had reached an agreement with Kyiv to fix it as soon as possible. Although he has finally agreed, this is a condition imposed by Orbán that particularly annoyed Volodymyr Zelensky, who has seen his government have to pay with community funds for the repair of infrastructure destroyed by the Russian army and which, moreover, benefits a leader who has always tried to hinder any aid for Ukraine.

The European bloc's new sanctions package against Russia includes a total ban on maritime services linked to the export of Russian-origin crude oil and an expansion of the ghost fleet list, meaning vessels identified by the EU that evade EU sanctions and continue to transport Russian fossil fuels. It also aims to restrict the banking activity of various Russian financial entities and increase the number of names of personalities and organizations on the EU's blacklist, whose funds in EU territory will be frozen and who will be prohibited from operating there.

The loan details

European credit is divided into two parts. Of the 90 million euros, one third will be allocated to Ukraine's general budget so that the country can cover public expenses beyond those strictly related to the war. These 30 million euros will give a little oxygen to the different ministerial portfolios, which in recent months have seen their budgetary capacity severely limited due to the inevitable increase in military spending.

The other part, 60 million, will be used for Ukraine to invest in military material and technology. The acquisitions, which must be made from EU member states, will allow Ukraine to “innovate in military matters and, at the same time, continue with attacks on the front,” explains to ARA Konrad Muzyka, analyst at the defense consultancy Rochan Consulting. As a whole, the loan will give stability to Kyiv and will once again show Moscow that the European Union not only supports Ukraine, but is also willing to help it militarily, points out the expert.

However, Muzyka warns that the credit will not solve some of the country's internal problems, such as that it “is not capable of recruiting new soldiers to cover all the casualties on the front.” At a time when US support has been reduced due to the war against Iran, European credit is even more necessary, but it will also not cover some of Ukraine's military needs such as high-precision ammunition, air defense systems, and intelligence services. “The latter two are very important, and Europe cannot provide that with this money,” warns Muzyka. 

All in all, after a particularly bad 2025 on the front for Ukraine, Kyiv is improving its attacking capacity. While Moscow faces difficulties in recruiting soldiers and covering casualties, after months of Kremlin superiority, Ukraine is starting to turn the tide. Kyiv has managed to halt the Russian advance, and this April has launched more drones than Moscow. Even Zelensky announced in the middle of the month that Ukrainian troops had managed to push back Russian troops from a position using only drones and robots. “Everything suggests that for Ukraine, 2026 will not be like 2025,” concludes Muzyka.