European Union unlocks 50bn euro financial aid for Ukraine amid shifting focus on Gaza, Red Sea

In a major respite for war-torn Ukraine, which had been jittery given the shifting focus on the war in Gaza and the escalating troubles for shipping routes in the Red Sea, the European Union member states on Thursday (Feb 1) unanimously agreed to provide Ukraine with 50 billion euros in financial aid.

The decision was taken during a summit in Brusselsdespite initial resistance from Hungary's Viktor Orban. European Council chief Charles Michel announced the breakthrough on X (formerly Twitter), stating, "We have a deal. Unity."Michel added, "All 27 leaders agreed on an additional €50 billion support package for Ukraine within the EU budget. This locks in steadfast, long-term, predictable funding for Ukraine."

Ukrainian President Volodymyr Zelensky while reacting to the unanimous EU deal said, "It is very important that the decision was made by all 27 leaders, which once again proves strong EU unity."

"Continued EU financial support for Ukraine will strengthen long-term economic and financial stability, which is no less important than military assistance and sanctions pressure on Russia," he added.

Notably, tensions were rifebetween the EU and Hungary when Hungarian PM Orban pledged to obstruct the allocation of $54 billion in funds to Ukraine.In December, Orban prevented a vote on extending aid to Ukraine.

Last December, EU leaders agreed to commence membership talks with Ukraine in a major victory for Zelensky. However, the EU accession process is time-consuming and it may take Ukraine many years before it joins the bloc.

Hungary's leader chose not to veto the accession talks. As far as funds are concerned, unanimity among EU members was necessary for these decisions, which was ultimately achieved on Thursday (Feb 1). The funds are crucial for Ukraine as it is eagerly anticipating support for its battered economy amid the ongoing war with Russia.

(With inputs from agencies)