EU Finalizes €90bn Loan and Sanctions Package
EU leaders have resolved a diplomatic impasse to approve a €90bn (£78bn) loan for Ukraine, alongside the bloc's 20th sanctions package targeting Russia. This agreement was finalized on Thursday, ahead of summit discussions in Cyprus scheduled to begin that evening, which will include a dinner meeting with Ukrainian President Volodymyr Zelenskyy.
European Commission President Ursula von der Leyen announced on social media:
“We are on our way to Cyprus with good news.”
She welcomed both agreements, which were concluded after weeks of delay.
“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.”
Hungary Lifts Vetoes After Pipeline Dispute Resolved
Hungary ended its vetoes on the long-delayed loan and sanctions following the resolution of a dispute concerning a damaged oil pipeline running through Ukraine. Russian oil deliveries to Hungary and Slovakia resumed on Thursday, as reported by the Hungarian energy company MOL, after both nations—heavily reliant on Russian crude—withdrawn their objections to EU support for Ukraine.
Hungarian Prime Minister Viktor Orbán, recently defeated by Conservative rival Péter Magyar, will not attend what would have been his final EU summit.
Summit in Cyprus and Zelenskyy’s Participation
President Zelenskyy will join other leaders in the Cypriot resort of Ayia Napa for talks over dinner. He emphasized on social media the importance of securing financial certainty for Ukraine, highlighting priorities such as arms production,
“the procurement of necessary weapons from partners that do not yet produce in Ukraine,”
and preparing the energy sector for the upcoming winter, in response to Russia’s recent devastating attacks on Ukraine’s energy infrastructure.
Energy Prices and Middle East Conflict Discussed
EU leaders will also address the surge in energy prices and the broader implications of the war in the Middle East amid ongoing uncertainty about the conflict’s resolution.
Regional leaders expected to participate in discussions on Friday include Lebanese President Joseph Aoun, Egyptian President Abdel Fatah al-Sisi, Syrian President Ahmed al-Sharaa, and Jordanian Crown Prince Hussein bin Abdullah.
Earlier this week, prior to former US President Donald Trump’s visit, an EU official remarked that the discussion depends on
“very volatile and fast-paced events”
in the Middle East, adding,
“we certainly hope the ceasefire is kept and maintained”.
EU’s Energy Strategy and Fossil Fuel Dependency
EU leaders are also expected to explore measures to address rising energy costs, including subsidies and incentives to accelerate the transition to green energy. Although wind and solar power have expanded since the 2022 energy crisis, the EU has been slower to reduce oil and gas use in sectors such as transport and housing.
The International Energy Agency (IEA) warned on Wednesday about the EU’s
“dangerous dependency on fossil fuels”
, noting that the bloc has paid an additional €24bn for oil and gas imports since the Middle East conflict began in February.
