Ukrainian President Volodymyr Zelensky has welcomed the European Union's approval of a €90bn loan for Ukraine that had been stalled by Hungary's outgoing prime minister Viktor Orbán.
"Today is an important day for our defence and for our relations with the European Union. The European support loan for Ukraine has been unblocked - EUR90 billion over two years," Mr Zelensky said on X.
"It matters that Ukraine is securing this level of financial certainty - after more than four years of full-scale war," he added, urging for the first tranche to be disbursed by May or June.
The European Union formally approved the promised loan to Ukraine as well as a new package of sanctions against Russia today.
The loan is set to cover two-thirds of Ukraine's needs for the next two years. Economists had said Ukraine would start to run out of money by June if the EU loan was not disbursed by then, requiring deep cuts to public services.
"While Russia doubles down on its aggression, we are doubling down on our support to the brave Ukrainian nation enabling Ukraine to defend itself and putting pressure on Russia's war economy," European Commission chief Ursula von der Leyen said.
"The EU's strategy to achieve a just and lasting peace in Ukraine rests on two pillars: strengthening Ukraine; increasing pressure on Russia. Today we moved forward on both," European Council President Antonio Costa said in a post on X.
It comes as Mr Zelensky arrived in Cyprus for a meeting of European Union leaders, including Taoiseach Micheál Martin.
The Ukrainian leader said that his country will spend the money on "arms production, the procurement of necessary weapons from partners that we do not yet produce in Ukraine, and the preparation of our energy sector and critical infrastructure for the next winter".
"During meetings in Cyprus, we will also discuss with partners further sanctions pressure on Russia over this war. The 20th package [of sanctions] has been unblocked, and it must be followed by other sanctions steps," said Mr Zelensky on X.
Russia pummelled Ukraine's power grid and energy sites throughout the winter, plunging millions into cold and darkness amid the harshest winter of the four-year invasion, with temperatures dropping to as low as -20C.
"These resources will help us sustain our power system, protect critical infrastructure, and accelerate recovery," Ukrainian Energy Minister Denys Shmygal said on X.
Only half of the €90bn will be disbursed to Ukraine this year, with the remainder coming in 2027. The bulk of the loan is earmarked for military spending, with around €17bn each year destined for general budget needs such as health and education.
"Deadlock over," EU foreign policy chief Kaja Kallas posted online.
"Russia's war economy is under growing strain, while Ukraine is getting a major boost."
EU ambassadors had already approved the loan and the sanctions package yesterday after Hungary lifted its veto, paving the way for the formal approval.
The approval of the loan, which had been delayed by several months due to a veto by EU member Hungary, throws Kyiv a lifeline, averting deep cuts to public services, but the country may need more money to meet its military needs this year, economists and officials said.
