EU addresses €90 billion loan to Ukraine after 'Druzhba' deadlock is resolved
Kyiv • UNN
EU ambassadors expect approval of a €90 billion loan after oil supplies resume. Two-thirds of the funds will go to defense and financial assistance to Kyiv.
Ambassadors of the European Union are meeting in Cyprus with high expectations that the EU's €90 billion loan, seen as vital support for Ukraine, may finally be disbursed after months of deadlock, the BBC reports, writes UNN.
Details
The funding was agreed upon last December, but Hungarian Prime Minister Viktor Orbán vetoed the payment in February due to a dispute over Russian oil supplies, which had stopped flowing through a pipeline in Ukraine.
"The EU believes the deadlock is about to end, as Ukraine announces pipeline repairs," the publication writes.
Orbán's defeat in last Sunday's elections also clarified the situation for the EU, ending his 16-year era as Hungary's prime minister. Hungary's next leader, Péter Magyar, has prioritized resetting Budapest's poor relations with Brussels.
We expect some positive decisions... regarding the 90 billion euro loan. Ukraine really needs this loan, and it is also a sign that Russia cannot outlast Ukraine.
Kallas expects decision on EU's €90 billion loan to Ukraine on Wednesday21.04.26, 11:24 • 3140 views
The EU funding was called a "matter of life and death" for Ukraine by Ukrainian Deputy Prime Minister Taras Kachka, and two-thirds of it will be spent on strengthening Ukraine's defense needs, with the remainder going to broader financial assistance.
Hungarian energy company Mol said its Ukrainian partners informed it that Russian oil supplies would resume flowing through the Druzhba pipeline to Hungary and Slovakia on Wednesday for the first time since January 27.
What Hungary and Slovakia say
Orbán, who is serving as interim leader until early next month, made it clear over the weekend that once oil supplies through the pipeline are restored, "we will no longer hinder the approval of the loan."
Ahead of fierce elections in Hungary this month, he accused Ukraine of imposing an "oil blockade" against his country and neighboring Slovakia, claiming that the EU was working with Ukraine against him.
Orbán's decision to back out of a deal last December to provide Ukraine with a €90 billion loan reportedly angered EU leaders, who had agreed to grant Hungary, Slovakia, and the Czech Republic an opt-out from the initiative.
Slovak Prime Minister Robert Fico, as Dennik N writes, also commented on the issue of the loan for Ukraine, noting that the government is closely monitoring developments around the Druzhba oil pipeline.
"Today, the legal framework for unblocking the 90-billion loan for Ukraine is beginning to be prepared. The government did not agree to this loan and is not participating in it, similar to Hungary and the Czech Republic," Fico said. However, unlike Hungary, Slovakia did not block the launch of the loan.
"I will not be surprised if the 90-billion loan is unblocked, and then oil supplies are stopped again, if the Druzhba oil pipeline is restored at all," Fico said.
Meanwhile, according to him, the Druzhba oil pipeline is being pressure tested and other preparatory measures are being carried out.
"We need oil that would, in particular, calm the situation in Slovakia, Hungary, and Central Europe," said the Slovak Prime Minister. According to him, Russian oil supplies would lower prices, as oil is becoming more expensive on world markets, mainly due to the conflict in the Middle East.
Fico also added that the government will not approve another package of sanctions against Russia until the Druzhba oil pipeline is actually opened.
Addition
Zelenskyy said late Tuesday that he had discussed with European Commission President Ursula von der Leyen and European Council President António Costa, who represents the 27 member states, how the loan would be unblocked.
"There are no grounds for its further blocking," Zelenskyy said. "The EU asked Ukraine to repair the Druzhba oil pipeline, which was destroyed by Russia. We repaired it. We hope that the EU will also fulfill its agreed obligations."
If the EU loan is finally agreed upon, it could still take several weeks before the funding reaches Ukraine, as the publication writes, Ukrainian media report.