European Commission moving forward with massive loan for Ukraine

European Union ambassadors have approved a major financial package for Ukraine after Hungary lifted its veto, clearing the way for a 90 billion euro loan and a new round of sanctions against Russia.

The announcement was made Wednesday by the EU's Cypriot presidency, with final approval from all 27 member states expected by Thursday.

Marta Kos, the EU Commissioner for Expansion, said the breakthrough follows progress on energy transit, particularly through the Druzhba pipeline:

"These days are good days. Good news for EU - Ukrainian relations and I'm very happy about this. The oil is flowing in the Druzhba pipeline, this means that probably or for sure we will be able to release the 90 billion euro loan, which is very, very important. Then, Rada, the parliament of Ukraine is delivering the reforms so that in the coming days we can pay 2.7 billion to Ukraine to help with liquidity."

The loan, agreed last year, is intended to support Ukraine's economy through 2026 and 2027. It had been blocked for months by Hungarian Prime Minister Viktor Orbán, who recently lost a general election.

The dispute centered on disruptions to Russian oil flows through the pipeline, which also delayed the EU's latest sanctions package.

The breakthrough came after Hungary's oil company MOL said transit would resume, with deliveries to Hungary and Slovakia expected as early as Thursday.

Kos added that political changes in Hungary could accelerate Ukraine's path toward EU membership:

"That with the change of the government in Hungary we will soon be able to open all the clusters formally. The European Commission and my team are ready and I hope the member states and the Council will act swiftly. I am very positive once again. I hope we will be able to deliver on our promises, 90 billion euro loan, going on with the accession process and providing the money based on conditionality for the budget of Ukraine."