EU will seek to unblock 90-bn-euro Ukraine loan Wednesday: official

According to an official, EU nations will try to give the go-ahead on Wednesday to release a 90 billion euro ($106 billion) loan that has been stalled for Ukraine, bolstering optimism that Hungary may lift its veto.

In a dispute with Ukraine over a broken pipeline delivering Russian oil, Viktor Orban, the outgoing prime minister of Hungary, had used the money as leverage.

However, Orban reiterated that Budapest was prepared to lift its veto provided oil deliveries were resumed after Kyiv announced last week that the pipeline will reopen by the end of April.

“The last element needed to allow for the disbursement of the 90-billion-euro loan for Ukraine” will be on the agenda when diplomats from the EU’s 27 member states meet Wednesday, a spokesperson for Cyprus, which holds the EU’s rotating presidency, said Monday.

To begin the loan, a modification to the bloc’s budget must be approved by all EU member states.

Before a written protocol is introduced for final adoption, the Wednesday meeting would determine consensus.

The spokeswoman added the issue to the agenda “in light of recent developments,” which fueled rumors that Budapest was prepared to play ball.

If a deal is made on Wednesday, things should proceed quickly.

Valdis Dombrovskis, the EU’s economy commissioner, told AFP last week that Brussels anticipates beginning loan releases in the second quarter of the year.

This comes little over a week after conservative opponent Peter Magyar, who has pledged to restore relations with Brussels, defeated Russia-friendly Orban in a national election.

Other EU leaders were incensed by Orban’s obstruction of the loan, which Ukraine desperately needs to address impending fiscal deficits.

The 62-year-old nationalist claimed on Sunday that he had “received an indication from Ukraine” through Brussels that Kyiv was prepared to resume oil deliveries as early as Monday. “Once oil deliveries are restored, we will no longer stand in the way of approving the loan,” Orban posted on social media site X.

On Monday, the European Commission, which has mediated disputes between Budapest and Kyiv, declined to comment on the restoration of supplies.