Despite Hungary’s veto of a €90 billion interest-free loan to Ukraine, the EU will not return to another option for supporting Kyiv that involves using frozen Russian assets.
Germany’s Foreign Minister Johann Wadephul made the statement at a joint news conference with Belgium’s foreign minister Maxime Prévot on Wednesday, February 25, in Berlin.
“This issue is definitively settled,” he said, ruling out a renewed debate on transferring Russia’s frozen funds to Ukraine.
Wadephul noted the EU had found “a very good fallback instrument” - a €90 billion loan. He criticized Hungary’s position, which is blocking the initiative.
The German minister said he was shocked by the actions of the Hungarian authorities and denied any link between the halt of supplies via the Druzhba oil pipeline and Budapest’s decision to block the European loan to Ukraine. Hungary “is betraying its own struggle for freedom,” Wadephul said.
A day earlier, European Commission President Ursula von der Leyen expressed confidence the EU would find a way to deliver the promised support to Ukraine. “The loan was agreed by the 27 heads of state and government in the European Council. They gave their word. That word cannot be broken,” she said in Kyiv, adding the EU has “different options” that can be used.
The European Commission presented draft legislative measures to provide Ukraine with an interest-free €90 billion loan in 2026–2027. The proposal would direct one-third of the sum to budget support for Kyiv and the remaining €60 billion to military aid, von der Leyen said on January 14 at a news conference in Brussels. The European Parliament approved the financial assistance package on February 11.
The decision to allocate the loan was made at the EU summit in mid-December 2025. Ukraine would have to repay the loan only after Russia pays Kyiv compensation for war damage. If Moscow refuses to compensate, the EU would use frozen Russian assets to cover Ukraine’s debt.
At the summit, two options for supporting Ukraine - now in its fourth year of defending against Russia’s full-scale invasion—were considered. One option envisaged using frozen Russian assets.
