The European Union approved a $106 billion loan package for Ukraine after Hungary dropped its opposition, unlocking funds frozen since December.

An additional $117 billion from the bloc’s long-term budget is expected later, a move analysts say could help place Ukraine on firmer footing through 2029.

Unlike earlier aid packages, this one is heavily focused on defense spending, with $70 billion allocated to military needs, including air defense systems and expanded drone production.

The EU also adopted its 20th package of sanctions against Russia, signaling expectations the war will continue.