Hungary has dropped its opposition to a roughly 90 billion euro (about $100 billion) European Union loan to Ukraine after Kyiv resumed oil transit via the Druzhba pipeline, with first deliveries expected by Thursday.
The dispute also delayed new sanctions against Russia, which the EU had initially aimed to adopt to mark the fourth anniversary of Russia's invasion of Ukraine on Feb. 24, 2022.
"Today, both the 90 billion euro Ukraine loan, and the 20th sanctions package have been included in the agenda of EU ambassadors, and have been approved at the level of the Committee of Permanent Representatives," a spokesperson for the Cyprus presidency of the EU Council said Wednesday, according to The Kyiv Independent.
The EU agreed last year on the loan to keep Ukraine financially afloat through 2027. But Hungary refused to sign off as Russia-friendly Prime Minister Viktor Orban accused Ukraine of sabotaging oil transit through a pipeline damaged by Russian attacks.
Orban in December agreed in principle to the loan, to which Hungary is not expected to contribute, The Wall Street Journal reported. He later reversed course, citing frustration over the pace of repairs on the pipeline, which carries Russian oil through Ukraine to Hungary and Slovakia.
Orban has said repeatedly that he would veto the loan until the pipeline was fixed. He also accused Ukraine of engaging in "energy blackmail."
In a letter Monday to European Council President Antonio Costa, Orban said Hungary is ready to lift the veto on the loan "without delay" once transit resumes, the Independent reported.
Slovak Foreign Minister Juraj Blanar said Bratislava is also ready to approve a 20th package of EU sanctions against Russia, which has been blocked because of the dispute, but "only once Russian oil arrives in Slovakia via the Druzhba pipeline."
MOL, Hungary's largest energy company, said Wednesday it had been informed that Ukrtransnafta, the Ukrainian operator of the Druzhba pipeline, was set to resume crude oil transit to Hungary and Slovakia by Thursday at the latest, according to Reuters.
Slovak Economy Minister Denisa Sakova confirmed that first deliveries should arrive by Thursday morning.
Hungary and Slovakia, both landlocked, were the only EU members still receiving Russian crude through the pipeline's southern branch before the disruption.
The route accounts for roughly 86% to 92% of Hungary's oil imports and nearly all of Slovakia's supply, according to the Independent.
Ukrainian President Volodymyr Zelenskyy said Tuesday that repairs on the pipeline have been completed, the Independent reported. He previously denied obstructing repairs and said in a letter to EU leaders last month that Ukraine was taking "all possible efforts" to restore operations.
European funding has become crucial for Ukraine after the Trump administration last year withdrew U.S. financial support. The loan is expected to cover about two-thirds of Ukraine's financing needs this year and next, with the rest coming from Western partners and international organizations.
Michael Katz ✉
Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.
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