Hungary dropped its opposition to a $106 billion loan from the European Union to Ukraine on Wednesday, most likely clearing the way for the bloc to extend a needed lifeline to Kyiv as the war with Russia drags on.
The loan — 90 billion euros — had been held up since February by Prime Minister Viktor Orban of Hungary and his government.
But on Wednesday, ambassadors from across the 27-nation European Union, meeting in Brussels, agreed to move ahead on the loan, according to a spokesperson from Cyprus, which currently holds the rotating six-month presidency of the European Union’s political leadership arm. The ambassadors also agreed to move forward with a package of sanctions against Russia, which had also been held up, added the spokesperson, who requested anonymity to discuss diplomatic deliberations.
While Hungary could in theory still object during final steps, both the loan and the fresh measures against Russia are most likely headed for swift final approval — and money could soon flow to Ukraine.
The break in what has been a monthslong impasse came about after the reopening of the Druzhba pipeline, which carries oil from Russia across Ukraine and into Slovakia and Hungary. The pipeline had been damaged in what Ukraine said was a Russian attack, and Hungary said Kyiv had not been moving fast enough to repair it.
Because of that, Mr. Orban’s government announced in late February that it would block the loan, which it had agreed to allow through as recently as December.
Ukrainian and E.U. officials saw Mr. Orban’s opposition to the loan as an example of pre-election postering before a vote on April 12; his ad campaigns had been anti-Ukraine and skeptical of the European Union.
But then Mr. Orban suffered a resounding defeat in those elections, and Peter Magyar, the winning candidate, quickly suggested that he would lift Hungary’s veto on the loan upon taking office next month. Officials initially thought that progress on the loan would have to wait until the newly elected Hungarian government formally took over.
Things moved even faster than that.
Mr. Orban posted on social media on April 19 that the pipeline could be fixed imminently. “Once oil deliveries are restored, we will no longer stand in the way of approving the loan,” he added, indicating that there might be room for even earlier progress.
Volodymyr Zelensky, Ukraine’s president, said on Tuesday that the pipeline had been repaired. A large Hungarian energy company, MOL, announced on Wednesday that oil had again begun to flow through the pipeline.
With the oil moving and the loan headed for final approval, money could soon begin to replenish an increasingly desperate Ukraine.
While European officials had found ways to keep Kyiv funded during the delay, the loan will provide more substantial financial support for Ukraine as Moscow’s full-scale invasion extends into a fifth year.
The loan itself will come at no eventual cost to Hungary, or to the Czech Republic and Slovakia, all of which opted out of helping to pay for it as a condition for allowing it to pass. The loan is backed by the European Union’s shared budget.
Ukraine would only need to repay the no-interest loan if Russia were to pay reparations. Kyiv needs the cash to buy air defenses and military equipment, and it has been rapidly depleting its existing finances.
In Hungary, in addition to signaling that he would unblock the loan, Mr. Magyar has struck a more friendly tone toward the European Union than Mr. Orban did.
But it remains unclear how much Mr. Magyar will change Hungary’s broader approach toward Ukraine. He has stopped short of endorsing additional financial aid to Kyiv, and he has made it clear that he opposes an accelerated timeline for Ukraine’s integration into the European Union.
Maria Varenikova and Lara Jakes contributed reporting.
Jeanna Smialek is the Brussels bureau chief for The Times.
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