EU unblocks €90 billion loan to Ukraine

Envoys from EU member states have finally paved the way for a €90 billion loan to Ukraine that had long been blocked by Hungary.

They also approved a 20th package of sanctions on Russia over its invasion of its neighbor.

A €90 billion ($106 billion) EU loan to Ukraine received preliminary approval from the 27 EU countries on Wednesday after several months during which Hungary exercised its veto , diplomats said.

The Cypriot EU presidency said the final approval is to be given by all the bloc's member states on Thursday.

The loan aims to assist Kyiv with its most urgent economic and military needs as it continues to fight against Russia's full-scale invasion.

Druzhba pipeline at center of dispute
The decision comes after Kyiv said that the Druzhba pipeline, which runs through Ukraine, has restarted deliveries of Russian oil to Hungary and Slovakia.

Those two countries could theoretically still halt the approval process if no oil arrives in the EU by Thursday.

Outgoing Hungarian Prime Minister Viktor Orban and the Slovak government had accused Ukraine of delaying repairs on the pipeline, which Kyiv denied.

The chances of Ukraine receiving the EU funds improved with Orban's defeat in April elections.

Although the leader of the winning party, Peter Magyar , is not expected to take office till next month, he has said he will no longer stand in the way of the loan.

Sanctions on Russia also approved
In addition, EU countries also agreed to the bloc's 20th package of sanctions on Russia, which had also been delayed by the spat with Hungary.

The EU had initially wanted to adopt the package to mark the fourth anniversary of the Russian invasion on February 24.

The package aims to curb the Russian economy to reduce Moscow's ability to finance its invasion.