European Union leaders have reached a significant agreement to provide Ukraine with a €90 billion loan package, ending a prolonged diplomatic impasse that had delayed the financial aid. The deal was finalized ahead of a summit in Cyprus on April 24, where the Ukrainian president, Volodymyr Zelenskyy, joined discussions with EU heads of state.

The European Commission president, Ursula von der Leyen, announced the breakthrough after Hungary lifted its veto, which had stalled both the loan and a new set of sanctions targeting Russia. The decision to drop objections followed the resumption of Russian oil deliveries to Hungary and Slovakia, two countries heavily dependent on Russian crude. The Hungarian energy firm MOL confirmed that pipelines supplying the region had started operating again, easing tensions after a dispute over a damaged oil pipeline passing through Ukraine.

Von der Leyen emphasized the EU’s continued commitment to supporting Ukraine amidst ongoing Russian military aggression. “While Russia doubles down on its aggression, we are doubling down on our support to the brave Ukrainian nation,” she said, highlighting the loan’s role in enabling Ukraine to defend itself and applying pressure on Russia’s wartime economy.

The €90 billion loan aims to provide Ukraine with crucial financial stability, allowing the government to prioritize urgent spending on arms production and energy sector preparations ahead of the approaching winter, as Zelenskyy underscored during the talks held in the resort town of Ayia Napa.

In addition to the financial package, EU leaders agreed on the bloc’s 20th round of sanctions against Russia. The latest measures focus on the Kremlin’s energy, banking, and trade sectors, including stricter controls on the “shadow fleet” of older tankers used to circumvent oil export restrictions and enhanced restrictions targeting Russian cryptocurrency trading.

However, the EU stopped short of imposing a comprehensive maritime ban on vessels transporting Russian crude oil. Leaders indicated hopes of coordinating such a move with G7 partners in the near future instead.

Beyond Ukraine and Russia-related issues, the summit agenda also included discussions about rising energy prices and regional security concerns stemming from the ongoing conflicts in the Middle East. Leaders from Lebanon, Egypt, Syria, and Jordan participated in talks aimed at addressing these challenges.

EU officials acknowledged the volatility of the Middle East situation, with hopes hinging on the maintenance of a recent ceasefire with Iran, which was extended indefinitely shortly before the summit.

To counter soaring energy costs within the EU, leaders considered measures such as reducing electricity taxes and accelerating investments in renewable energy. Despite significant growth in wind and solar capacities since the 2022 energy crisis, the bloc continues to rely heavily on oil and gas, particularly in sectors like transport and housing.

The European Commission warned that the EU remains dangerously dependent on fossil fuel imports. Since the onset of the Middle East conflict in February, the bloc has spent an additional €24 billion on oil and gas imports, underscoring the urgency of accelerating the energy transition.