EU approves €90bn loan for Ukraine as pipeline is turned on ending deadlock

Ukraine says it has resumed pumping Russian oil through a pipeline into Hungary and Slovakia, bringing to an end months of deadlock over a €90bn (£78bn) loan seen as vital European Union support for Kyiv.

Soon afterwards, EU ambassadors meeting in Brussels gave preliminary approval to the loan, as well as a 20th package of sanctions on Russia, officials said.

It is now expected to be signed off on Thursday.

Although the funding was agreed last December, Hungary’s Viktor Orbán slapped a veto on the payment in February after Ukraine said damage caused by a Russian attack had brought supplies to a halt.

Ukrainian oil and government sources told officials in Hungary and Slovakia that pumping had restarted, hours after the EU ambassadors began discussing the loan.

Orbán had demanded the oil start flowing again before the loan could be paid out, and Ukraine confirmed the repairs had been completed on Tuesday.

His election defeat last Sunday also cleared the air for the EU, bringing to an end his 16-year era as prime minister. Hungary’s next leader, Péter Magyar, has prioritised a reset in Budapest’s poor relations with Brussels.

“Ukraine really needs this loan and it’s also a sign that Russia cannot outlast Ukraine,” EU foreign policy chief Kaja Kallas said ahead of the ambassadors’ meeting.

Leave a Reply

Your email address will not be published. Required fields are marked *