EU Approves €90 Billion Ukraine Aid Package as Oil Flows Resume and Russia Sanctions Intensify

The European Union has approved a sweeping €90 billion ($106 billion) loan package to support Ukraine’s economic stability and military resilience, breaking months of political deadlock after the resumption of oil flows through a key pipeline serving Hungary and Slovakia.

The decision coincided with the approval of a new round of sanctions targeting Russia over its ongoing war in Ukraine. Initially prepared earlier this year to mark the fourth anniversary of the conflict, the measures had been delayed due to opposition from Hungary and Slovakia, whose objections were tied to disruptions in oil supplies earlier in the year.

Tensions between Ukraine and the two EU member states escalated in January, when Russian oil deliveries were halted following damage to a major pipeline crossing Ukrainian territory. Kyiv attributed the disruption to Russian drone strikes, though skepticism remained in Budapest and Bratislava. With oil flows now restored, both countries signaled readiness to move forward, clearing the way for the broader EU agreement.

The newly approved financial package is seen as critical for Ukraine as it continues to navigate the economic toll of war while sustaining its defense efforts. The funds, expected to be disbursed in the coming weeks, aim to reinforce the country’s fiscal capacity and strengthen its military production.

“Promised, delivered, implemented,” said António Costa, emphasizing the bloc’s commitment.
 Speaking ahead of a summit in Cyprus, he added that advancing Ukraine’s bid for EU membership must now remain a central priority. Standing alongside him, Volodymyr Zelenskyy welcomed the support, noting that the funds would bolster Ukraine’s armed forces and accelerate domestic production capabilities.

The breakthrough came after Russian crude resumed transit through the Druzhba pipeline, a vital energy artery crossing Ukraine into Central Europe. Slovak Prime Minister Robert Fico described the development as “good news,” expressing hope for improved relations between Ukraine and the European Union.

Hungarian energy company MOL Group confirmed that crude shipments had restarted at key pumping stations, ending a near three-month interruption. Despite broader EU efforts to reduce reliance on Russian energy, Hungary and Slovakia remain dependent on these supplies, setting them apart from most other member states.

Hungary’s Prime Minister Viktor Orbán had previously accused Ukraine of delaying pipeline repairs—claims that Kyiv firmly denied. Meanwhile, Fico cast doubt on whether the pipeline had been damaged at all, suggesting it may have been leveraged as part of a broader geopolitical struggle.

The dispute has once again exposed structural tensions within the EU’s decision-making framework, where unanimous approval among member states can stall critical initiatives. Calls for expanding majority voting have grown louder in recent months as leaders seek to prevent individual nations from blocking collective action.

Complicating matters further, earlier plans to use frozen Russian assets as collateral for the loan were abandoned after opposition from Belgium, where a significant portion of those assets is held. A compromise reached in December allowed certain countries to abstain from participation, though subsequent political maneuvering—particularly by Orbán ahead of Hungary’s April election—briefly derailed the process.

Alongside financial aid, the EU has intensified its economic pressure on Moscow. The latest sanctions target more than 40 vessels linked to Russia’s so-called “shadow fleet,” used to circumvent restrictions on oil exports. Additional measures include restrictions on banks, a ban on European use of Russian cryptocurrency platforms, and asset freezes on roughly 60 new entities.

These additions expand an already extensive sanctions regime affecting over 2,600 Russian officials, institutions, and affiliates, including Vladimir Putin, his close associates, and prominent oligarchs. With oil revenues remaining central to Russia’s wartime economy, the EU’s latest actions are aimed at tightening financial pressure while maintaining support for Ukraine’s long-term stability.