The European Union on Thursday approved a massive loan package to help Ukraine meet its economic and military needs for the next two years, the bloc’s Cypriot presidency said, after Hungary lifted its veto.
The EU also approved a new raft of sanctions against Russia over its war on Ukraine. The measures were prepared early this year and 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.
Ukraine desperately needs the €90 billion (US$106 billion) 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.
“Today the Council approved the final element needed to allow for the disbursement of the €90 billion loan for Ukraine,” Cypriot Finance Minister Makis Keravnos said. “Loan disbursements will start flowing as soon as possible, providing vital support for Ukraine’s most pressing budgetary needs.”
The political green light for the loan package came after Russian oil began flowing to Slovakia again through the Druzhba pipeline that crosses Ukraine. Populist Slovak Prime Minister Robert Fico welcomed that development, calling it “good news”.
