Ukraine is set to receive €50 billion in EU aid, after Hungary’s Viktor Orban dropped his veto blocking the funds to Kyiv.
Mr Orban, Vladimir Putin’s closest EU ally, caved at a European Council summit of EU leaders in Brussels on Thursday.
The abrupt about-turn from Mr Orban on the vital four-year funding package came after EU heads of state and government offered a possible review of the spending in two years, where the Hungarian leader can wield a veto.
Volodymyr Zelensky, the Ukrainian president, said: “It is very important that the decision was made by all 27 leaders, which once again proves strong EU unity.”
He added that the package would “strengthen long-term economic and financial stability” of his country, which has applied to join the EU.
The money will plug holes in the Ukrainian government’s budget to allow it to pay salaries and services, as its outgunned soldiers battle to hold back Moscow’s forces.
Mr Orban’s veto on the aid at a December summit caused fury amid weakening Western support for Ukraine as the war approaches the end of its second year.
Money from Washington is being delayed by Republicans in Congress and there are fears over a second Donald Trump presidency and what it could mean for Nato and support for Ukraine.
‘Orban fatigue’
The Hungarian nationalist was accused of holding Ukraine’s future hostage in a bid to blackmail Brussels into releasing billions of euros in frozen EU funds for Budapest.
Before the summit, Donald Tusk, Poland’s prime minister, said Mr Orban had to “decide if he is a part of our community”.
“We don’t have a problem with so-called Ukraine fatigue for sure, we have Orban fatigue now in Brussels,” he said, amid calls to strip Budapest of its EU voting rights.
The other leaders had said if Mr Orban did not drop his opposition, they would club together as 26 to keep aid flowing for Ukraine’s government.
The summit was expected to bring marathon talks but a deal was announced swiftly after Mr Orban met first with the leaders of Germany, France, Italy and the EU institutions.
Charles Michel, the European Council president, said: “All 27 leaders agreed on an additional €50 billion support package for Ukraine within the EU budget.
“[The] EU is taking leadership and responsibility in support for Ukraine; we know what is at stake.”
EU funds for Hungary remain frozen
Mr Orban has locked horns with the EU and Kyiv over sanctions against the Kremlin for Putin’s illegal invasion and signed an energy deal with Moscow after the war began.
He met Putin for talks at an event in China after calling for immediate peace negotiations and has suggested he might veto Ukraine’s membership of the EU.
Brussels has frozen about €20 billion in EU funds for Hungary over accusations the authoritarian Mr Orban is running roughshod over the rule of law.
EU funds for Hungary will remain frozen, regardless of the deal on aid for Ukraine that member states have agreed on, an EU diplomat said shortly after the deal was announced.
The diplomat said Hungary would still need to fulfil its own obligations after speculation the money could be unblocked to get Budapest’s support for the deal.
In December, Mr Orban allowed through a decision to open EU membership talks with Kyiv a day after getting a separate €10 billion released from Brussels.