EU leaders overcome obstacles to approve €50bn aid package for Ukraine

New Delhi, Feb 1: All 27 European Union leaders have reached an agreement on a €50 billion aid package for Ukraine, overcoming previous obstacles, particularly from Hungary, which had previously blocked the deal. Ukrainian President Volodymyr Zelensky expressed his gratitude for the new funding, emphasizing its potential to enhance the economic and financial stability of the country.

The Ukrainian economic ministry anticipates the first tranche of funds to be received in March, signaling a positive step forward. Concerns had arisen about Hungary's potential resistance, particularly given Prime Minister Viktor Orban's close alliance with Russian President Vladimir Putin. Orban had aimed to prompt a re-evaluation of the EU's policy towards Ukraine and had questioned the commitment to funding Kyiv over the next four years.

The approved aid package is earmarked to cover various essential expenses, including pensions, salaries, and other costs, over the next four years. Notably, the decision comes at a crucial time when US military aid for Ukraine is facing delays in Congress.

Reuters quoting diplomatic sources revealed that the new agreement includes an annual discussion of the package and the option to review it in two years if necessary. Viktor Orban's push for a yearly vote on the package had raised concerns about potential annual veto threats from Hungary, but the agreed-upon terms aim to provide stability and continuity.

Ursula von der Leyen, the president of the European Commission, called the decision "a good day for Europe," underscoring the collective effort of all 27 heads of state in reaching this significant milestone.