EU Approves €90 Billion for Ukraine as Hungary Blocks Reparations Plan

The European Union has agreed to provide Ukraine with €90 billion in new aid. However, a separate plan to use frozen Russian assets to fund the war-torn country has stalled. The €90 billion package was approved by 26 of the EU's 27 member states. Only Hungary voted against it. This money is meant to support Ukraine's basic government functions and recovery from 2025 through 2027. At the same time, a major disagreement has stopped a different financial plan. The EU cannot agree on a proposal to use profits from frozen Russian state assets. The goal was to create a €50 billion loan for Ukraine, calling it "reparations" for war damages. Belgium currently holds most of these frozen assets. It wants the loan to be clearly labeled as "reparations." Other countries, including France and Germany, oppose this label. They fear it could cause legal problems. Because of this standoff, three EU nations—Hungary, Slovakia, and Malta—have refused to support the loan plan. Without full agreement, the proposal cannot move forward. The result is a split decision. Ukraine will receive substantial new EU funding for the long term. But the quicker plan to send billions in aid from Russian asset profits is now on hold.