site.btaEU Gives Final Approval to Ukraine Loan, Expands Sanctions against Russia

The Cyprus Presidency of the Council of the EU announced that on Thursday the approval process was completed for the granting of a EUR 90 billion loan to Ukraine and the expansion of sanctions against Russia. The decision had been expected in recent months and was delayed due to a lack of unanimity stemming from Hungary’s opposition. 

On Wednesday, EU member states’ ambassadors reached unanimity, and on Thursday the written procedure on the final steps was completed. The first disbursement of funds to Ukraine will be made as soon as possible, an EU Presidency spokesperson said. 

A statement by the Council of the EU notes that of the total loan amount, EUR 30 billion will be channelled towards covering Kyiv’s most urgent budgetary needs, while the remaining EUR 60 billion will be used to strengthen Ukraine’s defence industrial capacities. On Thursday, the Council also approved the European Commission’s proposal to make EUR 45 billion under the loan available in the second quarter of this year.

In social media posts, European Council President Antonio Costa, European Commission President Ursula von der Leyen, and European Parliament President Roberta Metsola welcomed Thursday's developments. The European strategy for achieving a just and lasting peace has two dimensions - strengthening Ukraine and increasing pressure on Russia, and today progress was made on both, Costa said. “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," von der Leyen wrote. Metsola described Thursday's decisions as important for safeguarding European security and achieving peace.