Overview
- After Hungary and Slovakia dropped their vetoes as oil flows on the Druzhba pipeline resumed, the Council of the EU on Thursday approved the €90 billion loan and adopted the 20th sanctions package.
- The package provides €45 billion in both 2026 and 2027, with about €28 billion a year for weapons and domestic production and the rest for the state budget.
- President Volodymyr Zelensky said Ukraine expects the first tranche in late May or early June, with money going to arms production, urgent procurement, and energy system repairs before winter.
- The new sanctions omit a full ban on maritime oil transport but blacklist more shadow-fleet tankers, restrict services for LNG tankers and icebreakers, and tighten controls on banks and suppliers tied to Russia’s war industry.
- EU officials warn a €19.6 billion defense shortfall still looms for 2026, so partners beyond the EU will need to close the gap even as implementation of the loan now moves ahead.