EUR 90 billion for Ukraine versus Orban's veto. The European Commission is starting the procedure

On Wednesday, the European Commission started work on the release of a EUR 90 billion loan for Ukraine, including: sending a request to the Council of the EU (member states) to approve the payment of EUR 45 billion in support to Ukraine by the end of 2026. The release of funds will require the lifting of the veto by Budapest.

The President of the European Commission, Ursula von der Leyen, announced on Wednesday that the EC adopted on Monday a package of measures to release a loan to support and defend Ukraine in 2026-2027, adding that the date is not accidental, as it coincides with the fourth anniversary of the massacre in Bucha.

EC spokesman Balazs Ujvari said in Brussels that the Commission issued a positive opinion on the Ukrainian financing strategy at the end of March. Therefore, on Wednesday, the EC submitted an application to the EU Council to approve support for Ukraine in 2026 and transfer EUR 45 billion to Kiev by December 31, 2026; the remaining part of the loan, i.e. the second EUR 45 billion, is to go to Ukraine next year.

– The document specifies how much we intend to pay to Ukraine in 2026, for what purposes and through what channels, Ujvari said, explaining that the proposal specifies the division of funds for defense procurement and budget support for Ukraine. This year, EUR 16.7 billion will be allocated to plug the budget gap from the pool of EUR 45 billion, including through the instrument for Ukraine and macro-financial assistance.

As the EC noted, budget support is subject to strict conditions, including: regarding the rule of law and the fight against corruption. EUR 28.3 billion will go to defense orders. The Commission announced that once the application is approved by the Council, it will make the first disbursement of funds as soon as possible and that it is in the process of preparing loan agreements to be signed with Kiev.

The Commission also decided on Wednesday to allow Ukraine to derogate from drone procurement. The point is that, in accordance with the principle of the so-called European preference, drones purchased by Kiev with EU money should consist of at least 65 percent from European components. However, since quick purchases are not always possible and Ukraine is at war, the Commission has granted Kiev permission to purchase the necessary products also from third countries. EC defense spokesman Thomas Regnier admitted that the derogation currently applies to drones and their components, but it is possible that it will also cover other types of weapons in the future.

However, approval for the loan requires the withdrawal of the veto imposed by Budapest. As granting a loan means a change to the long-term budget of the European Union, this decision requires unanimity of the Member States. Prime Minister Viktor Orban blocked the payment of funds to Ukraine after Russian oil stopped reaching Hungary through the Druzhba pipeline damaged in late January in Russian attacks.

When asked whether Hungary would lift the blockade, the spokesman only said that in December 27 member states made a commitment to support Ukraine and the EC expects all 27 to keep this commitment. “Failure to comply would constitute a violation of the principle of sincere cooperation,” Ujvari said. The spokesman admitted that the EC is optimistic and hopes that the first money will reach Ukraine “in the first half of the second quarter”, i.e. in April or early May.

From Brussels Jowita Kiwnik Pargana (PAP)

jowi/ mal/ jpn/