The European Union has taken a decisive step toward providing Ukraine with a massive €90 billion financial support package by initiating the final legal procedure to approve the long-awaited loan. As reported by DW, the allocation of funds is approaching de facto approval. This expected financial injection represents a critical lifeline for Ukraine’s defense sector and macro-financial stability amid the ongoing war.
The amendment to the European Union’s Multiannual Financial Framework (MFF) has been officially included in the agenda for the upcoming meeting of the Committee of Permanent Representatives (Coreper II) scheduled for April 22. This amendment is the final technical hurdle required to activate the funding mechanism. According to diplomatic sources, the item has been listed as an “I-item,” meaning it requires no further discussion. Such a designation typically indicates that a preliminary consensus has already been reached among all member states. Once approved by the ambassadors, the procedure will conclude with a written endorsement, bringing the decision into full legal force.
Previously, the allocation of this major credit facility faced severe delays due to staunch opposition from the former Hungarian government led by Viktor Orban. However, the political landscape in Hungary has shifted dramatically. The new Hungarian Prime Minister, Peter Magyar, whose “Tisza” party recently secured an electoral victory, has signaled his administration’s readiness to unlock the financial aid. At the same time, Budapest has conditioned its support on the normalization of regional energy supplies, specifically the restoration of oil transit via the “Druzhba” pipeline, which had been interrupted earlier. This marks a pragmatic shift from Orban’s outright vetoes to more transactional diplomacy with Brussels and Kyiv.
A particularly notable aspect of this new €90 billion EU package is its structural approach to military assistance. The European Union is significantly altering its defense support strategy for Ukraine by investing directly in the country’s domestic defense industry. According to statements from the European Commissioner for Defense and Space, Andrius Kubilius, a substantial portion of the initial tranche of this loan will be allocated directly for the procurement of Ukrainian-made drones.
In 2026, Ukraine has requested extensive defense assistance, and the EU’s first delivery plan is strategically focused on unmanned aerial vehicles produced by Ukraine’s advanced domestic defense sector. This approach yields a dual benefit: it rapidly supplies the Ukrainian Armed Forces with crucial high-tech tools tailored for modern warfare, and simultaneously stimulates the Ukrainian economy. By routing European funds directly into local defense enterprises, the EU is helping to create jobs, generate tax revenue, and strengthen Ukraine’s long-term technological independence and defense sovereignty. This milestone €90 billion loan will undoubtedly serve as a clear message to Russia that European solidarity remains resolute.