The European Union formally approved a €90 billion emergency loan to Ukraine and adopted its 20th sanctions package against Russia on April 23, following months of deadlock that ended when Hungary withdrew its opposition.
The Financial Package
The interest-free loan, finalized at an EU summit in Cyprus, represents critical support for Ukraine's wartime economy. According to multiple sources, Ukrainian President Volodymyr Zelensky has requested the first tranche be disbursed by late May or early June. The Hindu reports that economists warned Ukraine would exhaust its funds by June without this assistance, while Meduza notes that Kyiv requires between $45 billion and $52 billion in external financing for 2026 alone to cover its budget deficit and sustain both military operations and social obligations.
The loan structure reflects internal EU divisions: Hungary, Slovakia, and the Czech Republic opposed the measure, so the remaining 24 member states agreed to cover the full amount without contributions from those three countries, according to Meduza.
The Pipeline Dispute
The approval came only after resolution of a bitter dispute over the Druzhba oil pipeline. In January, the flow of Russian oil through Ukraine to Hungary and Slovakia halted. The sources present sharply different characterizations of this event.
Meduza reports that Ukraine said the pipeline was damaged by Russian drones, while Hungarian Prime Minister Viktor Orban maintained that Ukraine deliberately sabotaged repairs and blocked European inspectors from the site. RT describes Orban as rejecting Ukrainian explanations and insisting Kiev halted supplies deliberately to influence Hungary's April 12 election.
The dispute escalated into personal confrontation between leaders. According to Meduza, Zelensky effectively threatened Orban openly, while Orban built his election campaign around anti-Ukraine rhetoric. RT characterizes the pipeline halt as a "politically motivated ploy" aimed at supporting Orban's opponent.
Oil flow resumed on April 22, with supplies reaching Slovakia the following day. Both Hungary and Slovakia signed the loan and sanctions documents only after oil physically arrived in their territory, Meduza reports, citing Ukrainian sources.
Political Shift in Hungary
Orban's Fidesz party lost the April 12 election to the pro-EU Tisza party led by Peter Magyar. Meduza reports that Magyar stated he would not continue blocking the loan since it involved no Hungarian funds. RT describes Magyar as a "pro-EU politician" slated to take over the government.
The Sanctions Package
The 20th sanctions package, originally planned for February to mark the war's fourth anniversary, targets Russian energy exports. According to Meduza, it bans provision of services to vessels carrying Russian liquefied natural gas and prohibits selling European tankers to Russian companies. Plans to ban services to all vessels carrying crude oil were ultimately dropped.
European Council President Antonio Costa stated the measures aim to achieve "a just and lasting peace in Ukraine," according to RT.
Reactions
Al Jazeera reports that Zelensky welcomed the development. RT quotes Russian Security Council Secretary Sergey Shoigu warning the loan will increase "the burden on ordinary Europeans" facing cuts to pension and social programs, and calling it "another step towards the complete loss of sovereignty by the European capitals." RT also cites German politician Sahra Wagenknecht calling the loan "madness" and criticizing Chancellor Friedrich Merz.
Cypriot Finance Minister Makis Keravnos, representing the EU presidency, said disbursement would begin "as soon as possible" in the second quarter of 2026.