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EU OKs $106B Loan Package for Ukraine 04/24 06:15
BRUSSELS (AP) -- The European Union on Thursday approved a 90-billion-euro
($106-billion) loan package to help Ukraine meet its economic and military
needs for two years after oil began flowing through a key pipeline to Hungary
and Slovakia, ending months of political deadlock.
The EU also approved a new raft of sanctions against Russia over its war on
Ukraine. The measures were prepared early this year and had been set to be
announced in February to mark the fourth anniversary of the conflict, but
Hungary and Slovakia opposed the move.
Hungary and Slovakia have been locked in a feud with Ukraine since Russian
oil deliveries to the two EU countries were halted in January after a pipeline
was damaged. Ukrainian officials blamed the damage on Russian drone attacks.
Both countries confirmed Thursday that deliveries have resumed.
Ukraine desperately needs the loan package to prop up its war-ravaged
economy and help keep Russian forces at bay. Hungary angered its EU partners by
reneging on a December deal to provide the funds. The loans are expected to be
available in coming weeks and months.
"Promised, delivered, implemented," European Council President Antnio Costa
posted on social media. A few hours later, as he arrived to chair a summit of
EU leaders in Cyprus, Costa told reporters that the priority now must be to
advance Ukraine's quest to join the bloc.
Standing alongside him, Ukrainian President Volodymyr Zelenskyy thanked his
European partners for their support. "We will work to make sure the funds are
delivered as soon as possible," he said. "This will strengthen, of course first
of all our army, Ukrainian forces, and allow us to boost production."
Pipeline breakthrough
The political greenlight for the loan package came after Russian oil began
flowing to Hungary and Slovakia again through the Druzhba pipeline that crosses
Ukraine. Populist Slovak Prime Minister Robert Fico welcomed that development
as "good news."
"Let's hope a serious relation between Ukraine and the European Union has
been established," Fico said.
Hungarian energy group MOL said it had "received crude oil at the
Fnyeslitke and Budkovce pumping stations earlier Thursday. Crude oil
deliveries via the Druzhba pipeline system have thus resumed to Hungary and
Slovakia after a hiatus of nearly three months."
Ukraine and most of its European backers oppose imports of Russian oil which
have helped to fund Russian President Vladimir Putin's war against Ukraine, now
in its fifth year. But unlike the rest of the European Union, Hungary and
Slovakia still depend on Russia for their energy needs.
Hungary's nationalist Prime Minister Viktor Orbn, who was recently defeated
in an election, had accused Ukraine of deliberately delaying repairs -- an
allegation that Zelenskyy denied.
Fico said Thursday he still didn't believe the pipeline was damaged at all
and alleged that the pipeline and oil "were used in the current geopolitical
battle."
Another EU voting hijack
The row has raised yet more troubling questions about decision-making in the
EU, which can often be held hostage to national interests when unanimous votes
are required. Several top officials have in recent months called for more
majority voting.
The 27-nation bloc had originally intended to use frozen Russian assets as
collateral for the loan. But that option was blocked by Belgium, where the bulk
of the frozen assets are held.
In December, the Czech Republic, Hungary and Slovakia agreed not to stop
their EU partners from borrowing the money on international markets as long as
the three countries did not have to take part in the scheme.
But Orbn, who has repeatedly blocked EU aid to Ukraine, angered the other
24 countries by later reneging on that deal over the pipeline dispute and as
campaigning heated up ahead of the April 12 election that he lost in a
landslide.
More sanctions on Russia
The EU has also been trying since February to push through a new raft of
sanctions against Russia to undermine its war effort, but Hungary and Slovakia
were also blocking those measures over the oil feud.
More than 40 ships believed to be part of Russia's shadow fleet illicitly
transporting oil were targeted.
Oil revenue is the linchpin of Russia's economy, allowing Putin to pour
money into the armed forces without worsening inflation for everyday people and
avoiding a currency collapse.
A number of banks were targeted, and a ban was imposed on Europeans using
Russian crypto currency.
Asset freezes were slapped on around 60 more "entities" -- often companies,
government agencies, banks or other organizations -- adding to a growing list
of more than 2,600 Russian officials and entities already under sanctions,
including Putin, his political associates, oligarchs, and dozens of lawmakers.
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