The European Union on Thursday approved a large loan package to assist Ukraine meet its economic and military needs for the following two years, the bloc’s Cypriot presidency said, after Hungary lifted its veto.
The EU also approved a brand new raft of sanctions against Russia over its war on Ukraine. The measures were prepared early this yr and set to be announced in February to mark the fourth anniversary of the conflict, but Hungary and Slovakia opposed the move.
Hungary and Slovakia have been locked in a feud with Ukraine since Russian oil deliveries to the 2 EU countries were halted in January after a pipeline was damaged. Ukrainian officials blamed the damage on Russian drone attacks.
Ukraine desperately needs the 90-billion-euro (US$106 billion) loan package to prop up its war-ravaged economy and help keep Russian forces at bay. Hungary angered its EU partners by reneging on a December deal to offer the funds.
“Today the Council approved the ultimate element needed to permit for the disbursement of the 90-billion-euro loan for Ukraine,” Cypriot Finance Minister Makis Keravnos said. “Loan disbursements will start flowing as soon as possible, providing vital support for Ukraine’s most pressing budgetary needs.”
The flow of Russian oil to Slovakia through the Druzhba pipeline that crosses Ukraine has resumed, Slovak Economy Minister Denisa Saková said Thursday, a breakthrough in a problem that has caused a serious diplomatic spat in Europe.
Populist Slovak Prime Minister Robert Fico welcomed the event, calling it “excellent news.”
“Let’s hope a serious relation between Ukraine and the European Union has been established,” Fico said. He thanked all those involved in solving the difficulty, including the European Commission and Hungary.
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Hungary and Slovakia were locked in a feud with Ukraine since Russian oil deliveries to Hungary and Slovakia through the pipeline were halted in January after the pipeline was damaged.
Ukrainian officials blamed the damage on Russian drone attacks.
Hungary’s nationalist Prime Minister Viktor Orbán, who was recently defeated in an election, accused Ukraine of deliberately delaying repairs — an allegation that Ukrainian President Volodymyr Zelenskyy denied.
Fico said Thursday he still didn’t consider the pipeline was damaged in any respect and alleged that the pipeline and oil “were utilized in the present geopolitical battle.”
Ukraine and most of its European backers oppose imports of Russian oil which have helped to fund Russian President Vladimir Putin’s war against Ukraine, now in its fifth yr. But unlike the remainder of the European Union, Hungary and Slovakia still depend upon Russia for his or her energy needs.
For 2 months, the 2 countries have accused Ukraine of failing to repair the damaged pipeline. Citing the difficulty, Hungary blocked a large EU loan to Ukraine while Slovakia refused to endorse recent sanctions against Russia until the supplies resumed.
The flow resumed after three months at 2 a.m. Thursday, the Slovak economy ministry said, lifting a serious obstacle to approving the EU funds for Ukraine later Thursday, just as EU leaders gather for a summit in Cyprus.
Ukraine desperately needs the 90-billion-euro (US$106 billion) loan package, originally agreed in December, to prop up its war-ravaged economy and help keep Russian forces at bay for the following two years.
The 27-nation EU had originally intended to make use of frozen Russian assets as collateral for the loan. But that option was blocked by Belgium, where the majority of the frozen assets are held.
In December, the Czech Republic, Hungary and Slovakia agreed to not stop their EU partners from borrowing the cash on international markets so long as the three countries didn’t have to participate within the scheme.
But Orbán, who has repeatedly blocked EU aid to Ukraine, angered the opposite 24 countries by later reneging on that deal over the pipeline dispute and as campaigning heated up ahead of the April 12 election that he lost in a landslide.
The EU has also been trying since February to push through a brand new raft of sanctions against Russia, which Hungary and Slovakia have blocked because of the oil feud.
Fico said he expected each issues to be solved on Thursday.
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