European Union leaders are expected to move forward on a major financial package for Ukraine, with officials signaling that approval of a roughly $106 billion loan could come as early as Wednesday.

Kaja Kallas said she anticipates “positive decisions” on the long-discussed loan as foreign ministers convened in Luxembourg for high-level meetings. The funding package, initially agreed upon in December, is seen as critical to sustaining Ukraine’s war effort against Russia.

Kallas emphasized that the loan would provide both practical and symbolic support, arguing it demonstrates that Moscow cannot outlast Kyiv in the ongoing conflict.

Momentum for the measure has increased following political changes in Hungary, where Prime Minister Viktor Orbán—a frequent critic of EU aid to Ukraine—recently suffered an electoral setback. His reduced influence could ease internal resistance that previously complicated approval of the loan.

Irish Foreign Minister Helen McEntee echoed the urgency, stressing the importance of advancing both the financial package and additional sanctions on Russia. She said recent visits to Ukraine underscored the country’s immediate need for sustained international support.

EU officials are also working on a new round of sanctions targeting Moscow, aiming to increase economic pressure as the war continues. The proposed loan is expected to play a central role in stabilizing Ukraine’s finances while enabling continued military and government operations.

The outcome of Wednesday’s discussions will be closely watched as European leaders balance internal political dynamics with ongoing commitments to Ukraine amid the protracted conflict.