EU pushes to unlock Ukraine loan after pipeline repair

EU ambassadors meet to approve a 90-billion-euro loan for Ukraine after Kyiv fixes a pipeline, overcoming Hungary’s veto and unblocking new Russia sanctions.

BRUSSELS: EU countries were set to make a push Wednesday to unblock a 90-billion-euro ($106 billion) loan for Ukraine, after Kyiv said it had fixed a damaged pipeline that had sparked a veto from Hungary.

Hungary’s outgoing nationalist leader Viktor Orban — who lost elections this month — has stalled the loan for months as leverage in a feud with Ukraine over the Druzhba pipeline carrying Russian oil.

Ukraine’s President Volodymyr Zelensky on Tuesday said Kyiv had completed repairs on the pipeline hit by a Russian strike and urged the EU to green light the badly needed loan.

But Budapest has said it was waiting for oil to actually start flowing again before it would lift its veto.

A Ukrainian official told AFP Wednesday morning that oil should start flowing to Hungary and Slovakia “within a few hours” through the pipeline.

Ambassadors from the bloc’s 27 member states meeting in Brussels were expected later in the day to be asked to give their final greenlight to the loan.

Hungary should then have a few hours to either agree or object in writing to the approval.

The ambassadors were also due to consider approving a new package of sanctions on Russia that had been held up by the row.

Russia-friendly Orban’s crushing defeat in elections after 16 year in power had fuelled hopes that the loan would be unlocked.

But EU officials had believed they may have to wait until his pro-EU successor Peter Magyar takes office in May to get it approved.

The row with Hungary had 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.

Ukraine needs the EU funds to plug looming holes in its budget, but has managed to secure enough money from other backers while Budapest stalled the loan.

Hungary and Slovakia — among the most Kremlin-sympathetic EU member states — had accused Kyiv of dragging its feet over the repairs.

Zelensky has made no secret of his staunch opposition to the fact that 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.

The Ukrainian leader on Tuesday also urged the EU to move ahead with its long-stalled 20th round of sanctions on Russia.

Slovakia — which had held up the sanctions along with Hungary — said Tuesday it would drop its veto once oil deliveries resume.