The EU has formally approved a €90 billion loan to Ukraine and a 20th sanctions package against Russia ahead of an informal summit in Cyprus. Half of the loan will be disbursed this year, with the remainder scheduled for 2027, and about €17 billion per year is earmarked for public services such as health and education. The package was unblocked after Hungary lifted its veto, providing a critical short-term lifeline for Kyiv though additional military funding may still be needed. Leaders in Cyprus will also discuss the Middle East conflict, energy measures and the EU's long-term budget.
EU Approves €90 Billion Loan For Ukraine and Unblocks 20th Sanctions Package Against Russia
FILE PHOTO: Ukrainian and European flags fly, amid Russia's attack on Ukraine, in central Kyiv, Ukraine August 11, 2025. REUTERS/Gleb Garanich/File Photo
The European Union on Thursday formally approved a €90 billion loan package for Ukraine and adopted a new, 20th sanctions package targeting Russia. The moves were announced ahead of an informal EU leaders' summit in Ayia Napa, Cyprus, which Ukrainian President Volodymyr Zelenskiy attended.
What Was Approved
The loan — roughly equivalent to $105 billion — is intended to cover about two-thirds of Ukraine's funding needs over the next two years. EU ambassadors had already cleared the loan and sanctions on Wednesday after Hungary lifted its veto, removing the final obstacle to formal approval.
Disbursement And Uses
Only half of the €90 billion will be disbursed this year, with the remainder scheduled for 2027. The bulk of the funding is earmarked for defence and military needs, while roughly €17 billion per year is designated for general budget items such as health and education.
Ukraine's President Volodymyr Zelenskiy arrives to attend an informal European leaders' summit in Ayia Napa, Cyprus April 23, 2026. REUTERS/Yiannis Kourtoglou
"While Russia doubles down on its aggression, we are doubling down on our support to the brave Ukrainian nation," European Commission President Ursula von der Leyen said, adding the bloc aims to strengthen Ukraine's ability to defend itself and pressure Russia's war economy.
Why It Matters
Economists had warned that, without EU funding disbursed by June, Kyiv could start exhausting its cash reserves and face steep cuts to public services. The loan approval therefore provides a crucial financial lifeline that averts immediate, deep cuts — though officials and analysts caution Ukraine may still need additional funds to meet urgent military demands this year.
President Zelenskiy said the package would "strengthen our army, make Ukraine more resilient, and enable us to fulfill our social obligations to Ukrainians, as set out in law." He added that further sanctions measures would be discussed with partners in Cyprus.
Summit Agenda And Energy Measures
The Cyprus summit is informal and no binding decisions were expected. EU leaders will also discuss the war in the Middle East, energy measures to shield consumers from price shocks, and the bloc's next long-term budget. On Friday, EU leaders will host counterparts from Egypt, Jordan, Lebanon, Syria and the Gulf Cooperation Council for a working lunch.
On Wednesday the European Commission proposed targeted energy measures, including cuts to electricity taxes and coordinated summer refills of national gas storage. For now, the Commission stopped short of major market interventions such as gas price caps or windfall-profit taxes that were used in 2022.
Currency conversion used in reporting: $1 = 0.8553 euros.
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