EU Moves Toward Unlocking USD98B Ukraine Aid After Dispute Eases

(MENAFN) According to reports, European Union ambassadors gathering in Cyprus are expected to move forward with approving a €90bn loan package for Ukraine, following signs that a prolonged political and logistical impasse is nearing resolution.

The financial assistance, originally agreed upon in December, had been stalled after Hungary’s Prime Minister Viktor Orbán blocked its release in February amid tensions over halted Russian oil deliveries through a pipeline crossing Ukraine.

Kyiv had attributed the disruption to damage at a key facility along the Druzhba pipeline caused by Russian strikes, while Orbán insisted that oil flows be restored before any funds could be disbursed.

Recent developments suggest progress, as Ukrainian authorities have indicated that the damaged pipeline has now been repaired. Additionally, political changes in Hungary appear to have eased tensions, with Orbán’s recent electoral defeat marking the end of his long tenure. His successor, Péter Magyar, has signaled an intention to improve relations with the EU.

Ahead of the meeting, EU foreign policy chief Kaja Kallas expressed optimism, stating: "We expect some positive decisions... on the €90bn loan,"
and added: "Ukraine really needs this loan and it's also a sign that Russia cannot outlast Ukraine."

Ukrainian Deputy Prime Minister Taras Kachka emphasized the importance of the funding, describing it as: "a matter of life and death" for the country. Reports indicate that roughly two-thirds of the loan will be allocated to defense, with the remainder supporting broader financial stability.

Meanwhile, Hungary’s energy company Mol has reportedly been informed that Russian oil shipments through the Druzhba pipeline are set to resume, with deliveries to Hungary and Slovakia expected to restart for the first time since late January.

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