EU Commission prepares €90bn Ukraine loan despite Hungary's veto

The European Commission has prepared the legal groundwork to disburse the first tranche of a €90 billion ($104.5 billion) loan for war-torn Ukraine that remains blocked amid resistance from Hungarian Prime Minister Viktor Orbán.

"We will deliver on the €90 billion loan to Ukraine," European Commission President Ursula von der Leyen stressed on Wednesday.

Russia-friendly Orbán has vetoed the loan as his party is facing a tough parliamentary election later this month. At a summit last month, several EU leaders were hopeful that Orbán will change his course after the election.

The commission has sent capitals a bill that requires unanimous approval to start disbursing the loan.

"With this we send a clear message: the commission stands ready to move forward," von der Leyen said.

Under the plans, €45 billion are to be disbursed in 2026, of which €16.7 billion are earmarked for budgetary assistance and €28.3 billion for improving Ukraine's defence industrial capacities with a focus on drone production.

"The budgetary support will be underpinned with strong conditions related to the rule of law, fight against corruption, economic resilience and sustainability," the commission said.