EU loan to Ukraine explained

Associated Press Associated Press

Ukraine has secured a crucial European Union loan to support the country's wartime efforts.

The 90 billion-euro or $106 billion package was approved Thursday after Ukraine repaired the Druzhba pipeline.

The move allows for oil to flow to Slovakia and Hungary.

Approval had been delayed because of EU political friction including resistance from outgoing Hungarian Prime Minister Viktor Orbán.

The loan is vital as Ukraine faces a significant financing gap over the next two years.

It will cover budgetary support and defense needs.

Repayment will begin once Russia pays war reparations.

EU leaders opted to borrow the money instead of using Russia's frozen assets.

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