EU yet to find way around Hungary veto on Ukraine loan

Hungary continues to block a €90 billion loan to Ukraine and the European Commission has not yet found a legal way to push through the package without the consent of all member states.

The EU promised Kyiv financial aid last December to help bridge a budget gap expected in April. The loan is to be financed through joint EU debt, which under the rules requires the unanimous consent of all 27 countries. However, Hungarian Prime Minister Viktor Orbán, who originally supported the proposal, has since changed his position.

European Commission President Ursula von der Leyen has said the EU will provide aid to Ukraine ‘one way or another’. The Union is also placing its hopes in a meeting of EU leaders on 19 March.

Diplomatic sources cited by Politico, however, admit there is currently no quick legal solution to circumvent the Hungarian veto.

Budapest is linking its approval to the resumption of Russian oil supplies via the Druzhba pipeline, which runs to Slovakia and Hungary. The pipeline has been shut down since 27 January and Kyiv says it was damaged by Russian attacks.

Brussels is therefore considering sending a team of experts to inspect the condition of the pipeline. According to diplomats, the outcome of such a mission could help break the deadlock.

Ukrainian President Volodymyr Zelenskyy has indicated that if restoring Druzhba’s operation is the only way to unblock aid, Kyiv could repair the pipeline in about six weeks, even though it does not agree with the step politically.(est)