Hungary drops veto, clearing path for $106 billion EU loan to Ukraine

World Hungary drops veto, clearing path for $106 billion EU loan to Ukraine By Aidan Stretch Aidan Stretch Reporter Aidan Stretch is a CBS News reporter based in Kyiv, Ukraine. Read Full Bio Aidan Stretch April 22, 2026 / 5:45 PM EDT / CBS News Add CBS News on Google The European Union issued preliminary approval on a $106 billion loan for Ukraine Wednesday, after Hungary lifted its months-long veto on the funds. Most of the funding will go toward Ukraine's defense sector, which officials in Kyiv say is central to Europe's long-term security. The move may also signal a more constructive relationship with the bloc following the ouster of Hungarian Prime Minister Viktor Orbán earlier this month.The loan, originally introduced in December, had been held up by a dispute between Hungary and Ukraine over an oil pipeline that runs through Ukrainian territory. Orbán vetoed the funds in February, accusing Ukraine of shutting down the Druzhba Pipeline, which delivers Russian oil through Ukraine to Hungary and Slovakia.But on April 12, Orbán lost Hungary's parliamentary elections to center-right challenger Peter Magyar, who took a more supportive stance toward Ukraine during the campaign. Ukrainian President Volodymyr Zelenskyy says that the Druzhba Pipeline is now repaired and that Russian oil flows to Hungary and Slovakia have resumed.The loan must still be officially approved by the EU after the EU ambassadors issued preliminary approval during a meeting on Wednesday, but with Hungary's veto dropped, no serious roadblocks remain.Ukrainian officials say that a majority of the funds will go toward military production. "We know that roughly two-thirds will be spent on our defense industry," Yuriy Sak, an adviser to Ukraine's Ministry of Strategic Industries, told CBS News. "Our defense industry is capable of producing $50 billion worth of weapons but the government right now can only buy $15 billion." The funds come at a crucial time for Ukraine'...