Hungary’s Veto Lifted: Europe Clears $106 Billion Loan for Ukraine

A fresh wave of support is rolling into Kyiv as the European Union signs off on a $106 billion loan after Hungary removed its long‑held veto. The money will largely go into Ukraine’s defense industry, a priority for both Kyiv and European security planners. The pause had started in December when Hungary clashed with Ukraine over the Druzhba oil pipeline that runs through Ukrainian land and delivers Russian crude to Hungary and Slovakia. Prime Minister Viktor Orbán had blocked the funds in February, accusing Kyiv of shutting down the pipeline. In early April a new Hungarian government took office, with Peter Magyar winning a parliamentary election. During his campaign, Magyar pledged stronger ties to Ukraine, and he has since taken steps that signal a shift. President Volodymyr Zelenskyy says the pipeline is now repaired and Russian oil flows again to Hungary and Slovakia. The EU’s ambassadors gave a preliminary green light on Wednesday, but the final approval still requires a full vote. With Hungary’s opposition gone, no major obstacles remain for the loan to move forward.Ukraine officials say roughly two‑thirds of the funds will be used for weapons production. Yuriy Sak, an adviser to Ukraine’s Ministry of Strategic Industries, told reporters that the defense sector can produce $50 billion worth of arms but currently only has $15 billion in the budget. The additional money will help launch projects that have stalled due to a lack of resources. Heorhii Tykhyi, the foreign affairs spokesperson, added that the funding is not charity but a defense of Europe itself. He stressed that Ukraine’s security interests are tied to the continent’s stability, especially against Russian aggression. While Hungary still depends heavily on Russian energy, Kyiv remains hopeful that the new leadership will act more cooperatively. Sak warned that Orbán’s era had been a “bone in their throat” and that the current government will likely be less disruptive. Zelenskyy spoke to journalists in Kyiv, expressing optimism that Hungary will play a constructive role. He called for peaceful coexistence between neighbors and said Ukraine would take steps to meet Hungary halfway.