Hungary set to drop veto on €90 billion EU loan to Ukraine as new pro-EU government takes shape

Hungary is expected to end its months-long blockade of a major €90 billion EU loan package for Ukraine as early as this week, according to EU diplomats and officials cited by Ukraine’s public broadcaster Suspilne, partner of EUalive.

The development comes just days after Hungarian voters delivered a historic defeat to longtime Prime Minister Viktor Orbán, paving the way for a more cooperative stance from Budapest toward Kyiv and the European Union.

On Wednesday EU ambassadors are scheduled to review a final procedural amendment to the bloc’s multiannual financial framework (MFF) regulation- the last outstanding step required to unlock the €90 billion loan facility for Ukraine covering 2026 and 2027. A spokesperson for the Cypriot EU presidency confirmed to Suspilne that the item has been placed on the agenda as a non-discussion point, after which a written procedure for formal adoption would follow.

EU diplomats told Suspilne they have detected “a new position from Orbán” on the loan, despite Hungary’s ambassador stating just last week that Budapest’s stance remained unchanged. One source described the situation as “developing very rapidly.”

The loan, first agreed by EU leaders in December 2025, is designed to provide critical budgetary and military support to Ukraine amid its ongoing defence against Russia’s full-scale invasion. It is backed by the EU budget rather than frozen Russian assets and has already cleared key hurdles: approval by the European Commission in January 2026, endorsement by the European Parliament in February, and initial legislative steps. Hungary’s veto- imposed in February 2026 over a dispute involving Russian oil transit via the Soviet-era Druzhba pipeline- had been the sole remaining obstacle.

Ukraine has maintained that it promptly informed Hungary of damage to the pipeline from Russian strikes and that repairs are underway, with full resumption expected in spring 2026. Hungarian officials, however, had accused Kyiv of politically motivated delays.

Landmark Hungarian elections clear the path

The shift in Budapest’s position is directly tied to Hungary’s parliamentary elections on 12 April, widely described as one of the most consequential votes in recent European history. Opposition leader Péter Magyar’s centre-right Tisza Party secured a landslide victory with approximately 53–54% of the vote and 138–141 seats in the 199-seat National Assembly – enough for a two-thirds supermajority to amend the constitution.

Magyar, a former Fidesz insider turned reformer, has signalled willingness to lift Hungary’s vetoes on EU aid to Ukraine and new sanctions against Russia once his government is fully in place, expected around mid-May. He has also pledged to improve Hungary’s standing in Brussels and unlock billions in frozen EU cohesion funds withheld over rule-of-law concerns during Orbán’s tenure. But he has said that Budapest could agree to unblock the financing if the Druzhba route, which supplies Hungary, is brought back online.

Péter Magyar links lifting Ukraine loan veto to Druzhba oil restart

While Magyar has been cautious on Ukraine during the campaign to avoid Fidesz attacks, post-election statements indicate he will prioritize normalizing relations with the EU and ending Budapest’s isolationist posture.EU diplomats noted to Suspilne that discussions on the loan and a new sanctions package – originally slated for EU foreign ministers on 21 April – may now be deferred until the new Hungarian government assumes full power, underscoring the election’s immediate impact.

Timeline and remaining hurdles

Even with the veto lifted, Ukraine will not receive the first tranche of funding in April. EU officials expect disbursement to begin in mid-May at the earliest, once a bilateral loan agreement, updated Ukrainian reform plan, and memorandum of understanding are finalized. The European Commission has already prepared the Ukraine Financing Strategy outlining payment amounts and conditions.

Ukrainian officials and EU sources stress that Kyiv must accelerate domestic reforms – particularly legislative ones – to maintain momentum and meet disbursement criteria. A slowdown in parliamentary productivity in recent months has been noted as a concern.

The €90 billion package represents a vital lifeline for Ukraine’s war economy, especially as other international support faces uncertainty. Its unlocking would mark a major policy reversal for Hungary and a significant diplomatic win for the EU, removing one of the bloc’s most persistent internal obstacles on Ukraine policy.

The original article by EUalive’s partner Suspilne in Ukrainian can be found here.

Caption: Democracy in Action placard in front of the European Parliament, where the Parliament’s Rapporteur for the situation in Hungary held a press conference in Brussels, Belgium, 14 April 2026. The briefing follows Hungary’s parliamentary elections held on 12 April, in which opposition leader Peter Magyar won a landslide victory with a two-thirds majority, ending 16 years of rule by Viktor Orban. EPA/OLIVIER HOSLET