The European Union plans to provide a significant financial package of €90 billion ($105 billion) to Ukraine, aimed at bolstering its defense against Russia for the years 2026 and 2027. Initially agreed upon in December, the plan faced delays due to political resistance from Hungary under former Prime Minister Viktor Orban. However, recent political changes in Hungary and the restoration of Russian oil flows have revived the proposal. Notably, Ukraine is not expected to repay the loan; instead, repayment is linked to future Russian reparations, leveraging approximately €210 billion in frozen Russian central bank assets as a financial backstop. The loan will be interest-free and disbursed evenly over two years, with €28 billion allocated for military spending and €17 billion for general budgetary needs each year. This funding is crucial for covering about two-thirds of Ukraine's estimated financial requirements of €135 billion over the next two years. The loan not only provides immediate financial aid but also signals Europe's long-term commitment to supporting Ukraine in its conflict with Russia, while carefully navigating legal and political challenges.