$106 Billion Loan Reflects E.U.’s View That Peace in Ukraine Is Far Away

For weeks, Ukraine had been caught in a bind. A path to ending the war seemed increasingly illusory, as peace talks with Russia went from yielding no results to being put on hold. That meant Kyiv needed to prepare to fight indefinitely, even as vital financial support from the European Union remained frozen.

On Thursday, a breakthrough finally arrived.

After Hungary dropped its opposition to a $106 billion E.U. loan to Ukraine the day before, European leaders unblocked the funds. The money, which had been held up since December, will cover a large share of Ukraine’s financial needs over the next two years. Once those funds are exhausted, an additional $117 billion from the bloc’s long-term budget is expected to be allocated to Ukraine.

Taken together, the pledges appear to put Ukraine on firmer financial footing at least through 2029, said Hlib Vyshlinsky, head of the Kyiv-based Center for Economic Strategy. The pressure, he added, now shifts to Moscow, which is facing growing economic challenges in sustaining its own war effort.

Source: The New York Times.

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