The European Union has approved a long-awaited $105 billion loan to Kyiv and new sanctions against Russia on Thursday — extending a lifeline that will alow Ukraine to continue to pay for the war and government operations.
The loan is set to cover two-thirds of Ukraine’s needs for the next two years, and it came after economists warned that the nation would run out of money by June if the EU failed to distribute the funds.
“This package will strengthen our army, make Ukraine more resilient, and enable us to fulfill our social obligations to Ukrainians, as set out in law,” President Volodymyr Zelensky said as he arrived in Cyprus, where he was set to meet with EU leaders.
A sign with a logo of the Cyprus Presidency of the Council of the European Union 2026 is pictured ahead of an informal European leaders’ summit in Ayia Napa, Cyprus, on April 23, 2026. REUTERS
Ukrainian President Volodymyr Zelensky will attend the summit. REUTERS“During meetings in Cyprus, we will also discuss with partners further sanctions pressure on Russia over this war,” he added. “The 20th package has been unblocked, and it must be followed by other sanctions steps.”
Half of the $105 billion will be disbursed to Ukraine this year, with the second half going out in 2027.
Zelensky suggested that the first half of the loan could become available as early as May.
The majority of the loan will be spent on Ukraine’s military budget, with about $20 billion going to Kyiv’s general budget, which handles civilian needs like health and education.
Ukraine is also looking to rebuild its battered energy grid and civilian infrastructure before the next winter, which will likely be a target for Moscow in the future, Zelensky said.
Rescuers work at a site of an apartment building hit by a Russian drone strike, amid Russia’s attack on Ukraine, in Dnipro, Ukraine, on April 23, 2026. REUTERSThe approval of the loan had been delayed by months due to a veto by EU member and Russian-ally Hungary, whose Prime Minister Victor Orbán suffered a “painful” election loss earlier this month.
Following challenger Peter Magyar’s victory, Hungary pivoted away from Moscow and joined the rest of the EU in approving the loan.
“We are on our way to Cyprus with good news,” European Commission chief Ursula von der Leyen told reporters ahead of the meeting.
“While Russia doubles down on its aggression, we are doubling down on our support to the brave Ukrainian nation enabling Ukraine to defend itself and putting pressure on Russia’s war economy,” she added.
With Post Wires
