EU Approves €90 Billion Ukraine Loan, Russia Sanctions After Hungary Lifts Veto
The EU has provisionally approved a €90 billion loan for Ukraine and new sanctions against Russia after Hungary lifted its veto. The agreement, expected to be finalized by Thursday, was previously delayed by Hungarian Prime Minister Viktor Orbán over an oil transit dispute. The resolution followed assurances of resumed oil supply to Hungary and Slovakia via the Druzhba pipeline.
The European Union has provisionally approved a promised €90 billion loan to Ukraine and a new package of sanctions against Russia, following Hungary's decision to lift its veto. The bloc's Cypriot presidency announced the development, with the 27 member states expected to formally endorse the agreement by Thursday afternoon.
The EU had previously agreed to the loan last year to ensure Ukraine's financial liquidity through 2026 and 2027. However, Hungary's Prime Minister Viktor Orbán, known for his Russia-friendly stance, had withheld approval. Orbán accused Ukraine of sabotaging the transit of Russian oil via a pipeline damaged by Russian attacks, leading to the delay.
This dispute also postponed the adoption of new sanctions against Russia, which the EU had initially intended to implement to coincide with the fourth anniversary of Russia's full-scale invasion of Ukraine on February 24, 2022.
The impasse was resolved after Hungary's oil group MOL announced on Wednesday that the Ukrainian operator of the Druzhba pipeline was prepared to resume crude oil supply to Hungary and Slovakia. MOL anticipates the first shipments via the pipeline to reach Hungary and Slovakia by Thursday at the latest. Both nations remain significantly dependent on Russia for their energy needs. Ukraine's prospects for receiving the loan had also improved following Orbán's loss in Hungary's parliamentary election on April 12, as the leader of the winning party, Peter Magyar, has indicated he will not obstruct EU funds for Kyiv, despite not taking power until next month.