With Viktor Orban Gone, Hungary Lifts Veto For EU To Approve $106B Ukraine Loan

The EU approved a €90 billion ($106B) loan package for Ukraine and a new tranche of sanctions on Russia after Russian crude resumed flowing via the Druzhba pipeline to Hungary and Slovakia, breaking a months-long political impasse. The loan should be available in the coming weeks and aims to stabilize Ukraine’s economy and military effort. For markets, resumed pipeline flows ease regional energy tightness and could reduce inflationary pressure in affected EU states, a modest tailwind for the euro. At the same time, tougher sanctions, asset freezes and restrictions on use of Russian crypto increase geopolitical risk and may support safe-haven demand for the dollar. The decision also highlights EU decision-making risks from unanimous voting, a factor that could add policy uncertainty. Net effect on EUR/USD is ambiguous: energy relief supports the euro, while sanctions-driven risk-off tendencies could bolster the dollar — overall mixed implications for FX markets.