EU unblocks €90bn loan
- The EU agreed to unblock a €90bn loan for Ukraine after Hungary lifted its veto. (bbc.com) - Reports say the breakthrough followed Ukraine resuming Russian oil flows through the Druzhba pipeline to Hungary and Slovakia. (rferl.org) - President Zelenskyy called the move “the right signal”, while Viktor Orban’s recent election loss weakened his bargaining position on the package. ( )
The European Union has finalized a €90 billion loan for Ukraine after Hungary dropped the veto that had held it up for weeks. (consilium.europa.eu) The Council of the European Union said on April 23 that the money is meant to cover Ukraine’s urgent budget and defense-industry needs in 2026 and 2027. The bloc said disbursements can now begin under a conditional framework tied to rule-of-law and anti-corruption requirements. (consilium.europa.eu) Hungary had blocked the package during a dispute over Russian oil transit through the Druzhba pipeline, which crosses Ukraine before reaching Hungary and Slovakia. Reuters reported that oil flows were expected to resume after a halt of several months caused by damage to a pumping station in Ukraine. (usnews.com) That turned an energy route into leverage in a wider fight over wartime financing. Ukraine needs outside funding to keep its state functioning while Russia’s invasion continues into a third year, and European governments have been trying to lock in support beyond month-to-month aid votes. (consilium.europa.eu) The package also shows how one member state can slow European Union decisions that require unanimity. Prime Minister Viktor Orbán has repeatedly used that power in disputes over Ukraine policy, sanctions on Russia, and European Union budget measures. (bloomberg.com) Orbán’s position weakened after Hungary’s April 12 parliamentary election, when he conceded defeat after 16 years in power. Associated Press reported on April 17 that Orbán said his Fidesz party needed “complete renewal” after the loss. (apnews.com) Ukrainian President Volodymyr Zelenskyy called the decision “the right signal,” according to multiple reports on April 22 and 23. European Union officials said the first payment should be made as soon as possible now that the final legal step is complete. (theguardian.com, (consilium.europa.eu))
