EU readies first payment to Ukraine as soon as Hungary lifts veto on €90bn loan

Key Points:

• The European Commission is preparing the technical and legal framework to release the first payment from a €90 billion loan to Ukraine, pending the lifting of Hungary's veto tied to a dispute over the Druzhba oil pipeline.
• Hungarian Prime Minister Orbán is blocking the financial aid due to disagreements with Ukraine about the pipeline's closure, which Budapest claims is a political move ahead of Hungary's April 12 elections.
• The Commission has unveiled the first of four documents needed for the assistance program, with a €45 billion allocation for 2026 split between financial and military support, including exemptions for drone components from the "Made in Europe" rule.
• The veto is seen as a breach of the EU's December agreement and is the main obstacle, as Hungary is the only member state whose unanimous consent is required for joint borrowing regulations benefiting a non-EU country.
• EU officials hope the veto will be lifted after the Hungarian elections; if not, Ukraine risks running out of foreign aid by mid-May, leading to severe budget cuts and delays in military production, with Ukrainian President Zelenskyy accusing Orbán of obstructing aid to please Moscow.