AYIA NAPA, Cyprus – The EU gave a long-awaited green light on April 23 to release a €90 billion (S$134 billion) loan for Kyiv, with leaders preparing to celebrate the end of the deadlock with Ukrainian President Volodymyr Zelensky in Cyprus in the evening.
After months of wrangling with Hungary, the final sign-off for the loan and a new package of EU sanctions on Russia boosted Mr Zelensky as he touched down for talks with the bloc’s leaders in resort town Ayia Napa.
EU chief Ursula von der Leyen welcomed the “good news” as she headed to Cyprus.
“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,” she said on X.
Mr Zelensky said on the plane to Cyprus that he hoped Ukraine would receive the money by “the end of May – beginning of June” to “strengthen our army and, of course, to support domestic production of Ukrainian weapons”.
The €90 billion was blocked after a bitter row broke out between Hungary’s nationalist premier Viktor Orban and Mr Zelensky.
Mr Orban said he would only lift his veto after Ukraine fixed a pipeline damaged by a Russian strike. After 16 years in power, Mr Orban suffered a crushing election defeat to pro-EU opposition figure Peter Magyar in an election in April.
And the standoff was resolved when Mr Zelensky said on April 21 repairs had been completed, with officials saying the next day that Ukraine had restarted pumping oil to Hungary and Slovakia.
Moscow ally Orban has frequently been a thorn in the EU’s side and EU officials hope decisions on Ukraine will now be made faster without his opposition.
Diplomats were relieved by the end of the row. One EU diplomat said Zelensky’s Cyprus visit was “symbolically important” now that the EU money will help support Kyiv against Russia in 2026 and 2027.
A senior Ukrainian official said Mr Zelensky would discuss with leaders “joint weapons production and security capabilities, the challenges posed by the war in Iran” and air defence for Ukraine.
Mr Orban, who will only step down in May, will not attend meetings in Cyprus on April 23 and April 24, which will be informal, with no concrete decisions expected.
During the two days of talks in Cyprus, which holds the rotating EU presidency, leaders will also discuss the Middle East war and its fallout, including skyrocketing energy prices.
Cyprus was sucked into the war in March after a drone strike on a British base on the Mediterranean island.
European leaders will be joined on April 24 by their regional counterparts for what a senior EU official described as “intensive dialogue”.
Expected to join them are Lebanese President Joseph Aoun, Egyptian President Abdel Fattah al-Sisi, Syrian President Ahmed al-Sharaa, and Jordanian Crown Prince Hussein bin Abdullah.
During a working lunch, they will discuss the situation in Lebanon.
A key issue for Europe is the Strait of Hormuz whose effective closure has sent oil prices soaring and crimped supply of jet fuel in Europe.
The official said the bloc was “ready to contribute” to keep the strait open “when the conditions are met”, noting that any assistance depended on “events”.
“We certainly hope that the ceasefire is kept and maintained.”
The European Union’s 2028 to 2034 budget will also be discussed for the first time, with hopes of securing a final agreement by the end of 2026.
The EU executive wants a bigger budget worth around €2 trillion though national governments are reluctant to pay more.
That is why despite the energy shocks, the EU has little wiggle room to spend more as it pays off Covid-era loans.
But as with anything related to money in the EU, France and Germany are diametrically opposed, with Paris calling for more European investment and Berlin arguing for fiscal restraint.
European officials fear that without a deal before France’s presidential election in 2027, there is a risk that a far-right leader could cut contributions to the EU by France, the bloc’s second-biggest economy.
