The European Union (EU) has given a preliminary green light to unblock a 90-billion-euro ($148 billion) loan for Kyiv, after a months-long row between Ukraine and Hungary over a damaged pipeline.
Diplomats said Hungary was given 24 hours to sign off definitively as it waits for Russian oil to arrive through the Druzhba pipeline after Kyiv said operations had restarted.
The bitter feud over the pipeline pitted Hungary’s nationalist premier Viktor Orbán against Ukrainian President Volodymyr Zelenskyy, stalling the vitally needed funds for Kyiv.
Resolving the stand-off would allow Brussels to start paying out the loan in the coming months that Ukraine requires to plug its budget four years into Moscow’s invasion.
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Kremlin-friendly Mr Orbán — who suffered a crushing election defeat this month — insisted that he would not budge until Ukraine repaired the pipeline hit by a Russian strike.
Officials said Ukraine had restarted pumping oil to Hungary and Slovakia, a day after Mr Zelenskyy announced the repairs were completed.
Hungarian energy giant MOL said it “expects the first crude oil shipments following the restart of the Ukrainian section of the pipeline system to arrive in Hungary and Slovakia by tomorrow at the latest”.
Slovakia’s Economy Minister Denisa Sakova also said the first deliveries were expected in the early hours of Thursday, in a post on Facebook.
The Druzhba oil pipeline had become a point of tension. (Reuters: Bernadett Szabo)
Hungary and Slovakia — among the most Kremlin-sympathetic EU member states — had accused Kyiv of dragging its feet over the repairs.
Mr Zelenskyy has made no secret of his staunch opposition to the fact some EU members still buy Russian oil and gas — a key source of revenue for Moscow to fund its invasion launched more than four years ago.
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The row with Hungary has held up EU support for Ukraine at a time when the United States has largely cut Kyiv off and eased sanctions on Russian oil amid the Iran war.
Mr Orbán’s loss in elections after 16 years in power had fuelled hopes that the funds would be unlocked.
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But EU officials had believed they may have to wait until his pro-EU successor Péter Magyar takes office in May to get it approved.
Alongside the loan, EU countries also looked to a approve a fresh round of sanctions on Russia that had been stalled by both Hungary and Slovakia over the pipeline row.
The new round of economic punishment for Moscow — the 20th from the EU since the war started in 2022 — includes measures Russia’s energy, banking and trade sectors.
Mr Zelenskyy on Tuesday, local time, urged the EU to begin ratcheting up sanctions on Moscow again at a time when US President Donald Trump has eased pressure on the Kremlin.
Slovak Prime Minister Robert Fico, who has repeatedly clashed with Kyiv and Brussels, said Wednesday that he “would not be surprised if the 90 billion loan were unblocked and then oil supplies were cut off again”.
AFP