EU unblocks Ukraine loan
- The EU moved to approve a roughly €90 billion loan to Ukraine after Hungary lifted its veto. - Hungary dropped its blockade once the Druzhba pipeline reopened, restoring Russian oil flows to Hungary and Slovakia. - Ukraine accused the EU of 'blackmail' over pressure to repair the pipeline, underscoring the political cost of unlocking aid (nytimes.com) (theguardian.com) (rferl.org).
European Union ambassadors cleared a €90 billion loan for Ukraine on April 22 after Hungary dropped its veto over a Russian oil pipeline dispute. (rferl.org) The package covers 2026 and 2027 and is worth about $106 billion at current exchange rates. Reuters reported the money had been approved in principle in December but was held up for months by Budapest. (finance.yahoo.com) Hungary lifted its blockade after oil transit resumed through the Druzhba pipeline, a Soviet-era line that carries Russian crude across Ukraine to Central Europe. Hungarian oil group MOL said Ukrtransnafta told it shipments restarted on April 22, with the first barrels expected in Hungary and Slovakia by April 23. (aol.com) The stoppage began after a Russian strike damaged a pumping station in western Ukraine in late January. Hungary and Slovakia, the two European Union states still heavily reliant on Russian oil through Druzhba, had pressed Kyiv to finish repairs. (aljazeera.com) The loan matters because Ukraine needs outside financing to keep paying for government operations while fighting Russia’s invasion. Reuters reported the funds should help prevent Kyiv from running out of money by June. (finance.yahoo.com) The same April 22 meeting also advanced the European Union’s 20th sanctions package against Russia. Cyprus, which holds the rotating presidency of the Council of the European Union, said both measures moved to a written procedure for final approval by member states. (usnews.com) Kyiv said the price of unlocking the money was political as well as technical. In March, Ukrainian officials accused Hungary and Slovakia of “blackmail” after both governments linked pipeline repairs to pressure over electricity supplies and European Union decisions. (politico.eu) President Volodymyr Zelensky said pressure to reopen a line carrying Russian oil through wartime Ukraine was unacceptable while Russian attacks were still hitting Ukrainian energy infrastructure. The pipeline is exempt from European Union sanctions, which left it as one of the last major routes for Russian crude into the bloc. (gulfnews.com)
