EU Ambassadors Meet in Cyprus; Hungary Ceases Veto on Ukraine's €90 Billion Loan
European Union ambassadors are currently meeting in Cyprus, with a €90 billion (£78 billion) loan for Ukraine expected to be disbursed following months of Hungarian obstruction. The funding, initially agreed last December, faced a veto from then-Hungarian Prime Minister Viktor Orbán in February, ostensibly over disruptions to Russian oil supplies via a pipeline in Ukraine.
Ukraine had reported damage to an oil hub on the Druzhba pipeline due to Russian strikes. Orbán had linked the loan's release to the resumption of oil flows. The EU now anticipates an end to the deadlock, as Ukraine states the pipeline has been repaired, enabling oil deliveries to Hungary and Slovakia for the first time since 27 January.
Orbán's recent electoral defeat, which concludes his 16-year tenure as prime minister, is also seen as clearing the diplomatic path. Hungary's incoming leader, Péter Magyar, has indicated a desire to improve Budapest's strained relations with Brussels.
Kaja Kallas, the EU's foreign policy chief, expressed expectations for "some positive decisions... on the €90 billion loan," emphasising its critical importance for Ukraine and as a signal against Russian endurance. Ukrainian Deputy Prime Minister Taras Kachka has described the EU funding as "a matter of life and death" for Kyiv, with two-thirds designated for defence and the remainder for broader financial assistance.
Orbán, acting as caretaker leader, had affirmed at the weekend that once oil deliveries through the pipeline were restored, Hungary would no longer impede the loan's approval. During his unsuccessful election campaign, Orbán had accused Ukraine of an "oil blockade" and alleged EU collaboration with Kyiv against his government. Satellite imagery from late January suggested significant damage to an oil tank at Brody in western Ukraine, with Kyiv attributing the delays to Russian attacks and claiming engineers faced hostilities during repairs. Ukraine has also targeted oil facilities within Russia, including a pumping station linked to the Druzhba pipeline in the Samara region this week.
Orbán's prior refusal to honour the December agreement had reportedly angered EU leaders, who had provided Hungary, Slovakia, and the Czech Republic with opt-outs from the funding scheme. Ukraine's President Volodymyr Zelensky stated on Tuesday that he had discussed unblocking the loan with European Commission President Ursula von der Leyen and European Council head António Costa. Zelensky asserted that there were "no grounds for blocking it any more," noting Ukraine had repaired the Druzhba pipeline as requested by the EU.
