European Union officials have said they expect progress this week on key dossiers regarding Ukraine and Israel after Hungarian Prime Minister Viktor Orban, whose government had blocked the initiatives, was voted out of office.

Orban’s forthcoming departure opens the way for the bloc to release a 90-billion-euro ($106bn) loan to Ukraine and levy sanctions on violent Israeli settlers, officials said on Monday.

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The loan to Ukraine, desperately needed by Kyiv to maintain its defence against Russia’s invasion, should be agreed on at a meeting on Wednesday, according to Cyprus, which holds the EU’s rotating presidency.

“The last element needed to allow for the disbursement of the 90-billion-euro loan for Ukraine” will be on the agenda, said a spokesperson cited by the AFP news agency, in an apparent reference to the change of government in Hungary.

A meeting of diplomats on Wednesday will seek consensus on the necessary amendment to the bloc’s budget before a written procedure is launched for final adoption of the loan. The process is expected to move quickly as Hungary’s new leader, Peter Magyar, prepares to take power.

Orban, widely known as the EU’s main spoiler, had held up the money as leverage in a feud with Kyiv over the suspension of Russian oil supplies over Ukrainian territory through the Druzhba pipeline. Ukraine has said the pipeline was shut due to a Russian attack.

But Orban’s departure appears to have opened up opportunities on all sides.

Magyar has said that he is ready to work constructively with the EU. He called on Monday for the reopening of Druzhba.

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Ukrainian President Volodymyr Zelenskyy said in an interview broadcast on the same day that the pipeline would be restored to operation by the end of April, making the passage of the loan all the more likely.

EU foreign policy chief Kaja Kallas said last week on X that it was “high time” to unblock the loan and move forward with a sanctions package against Russia.

Also last week, EU Commissioner for Enlargement Marta Kos said at an event together with Ukrainian Minister of Finance Sergii Marchenko that the EU would definitely deliver the loan to Ukraine following the Hungarian election.

Measures against Israel appear imminent

On the Middle East front, Kallas said on Monday that the bloc would assess whether it was possible to move forward with measures against Israel, which include a potential suspension of the EU’s cooperation agreement as well as proposals for sanctions on hardline Israeli settlers in the occupied West Bank.

Spain’s Prime Minister Pedro Sanchez has pushed for the former measure, which is on the agenda of Tuesday’s meeting of foreign ministers in Luxembourg.

Suspending the entirety of the agreement requires unanimity, but dropping an isolated part of the deal facilitating closer trade ties would only require support from a weighted majority of EU countries.

The ouster of staunch Israel backer Orban, who had vetoed sanctions on Israeli settlers in the West Bank for months, adds to the likelihood of movement on measures against Israel.

In what appeared to be a reference to Orban, Kallas said on Monday that one country had blocked sanctions against Israeli settlers.

“Now this country had the elections and will have a new government. I will not speak for the new government, but definitely I think we can look into all these policies and see whether they have a new approach,” she said.

Measures against Israel would also require a shift in position from EU heavyweights, such as Germany or Italy, though the latter has already signalled a tougher line on Israel by suspending a defence agreement.