EU to Proceed With €90B Ukraine War Loan Despite Hungary’s Veto Attempt

The European Union will continue preparing a €90 billion ($106 billion) war loan for Ukraine despite Hungary’s refusal to approve one of the required legislative acts, European Commissioner Valdis Dombrovskis said, as reported by European Pravda on February 23.

The EU Council is set to adopt two legislative acts on February 24 that will allow technical work on the loan to proceed, even though Hungary has blocked amendments to the EU’s 2021–2027 multiannual financial framework, which are necessary to finalize the borrowing process.

Hungarian Foreign Minister Péter Szijjártó had previously stated that Hungary would oppose Ukraine’s access to the war loan. He accused Kyiv of blackmail, blaming the Ukrainian government for the recent halt in Russian oil transit through the Druzhba pipeline, which runs through Ukrainian territory.

The halt of the pipeline was caused by a Russian strike on key infrastructure near the western Ukrainian town of Brody on January 27, the Ministry of Foreign Affairs of Ukraine said.

Ministry of Foreign Affairs of Ukraine spokesperson, Heorhii Tykhyi, said the attack damaged “critical equipment” and made pumping impossible, adding that Hungary was informed of the cause the same day.

“Tomorrow the finalization of the Regulation on the Ukraine support loan will take place, and this process is going according to plan,” Dombrovskis said. He explained that the approval of the regulation would complete the political decision-making on the loan and allow the European Commission to continue preparing further documents, including this year’s financing strategy.

Read more

Category

World

Hungary Has Alternatives to Russian Energy, Yet It Clings to the Kremlin

Feb 26, 2025 17:19

Dombrovskis noted that the dispute centers on amendments to the EU’s long-term budget, which are required to enable the Commission to borrow at the EU level to fund the support package. However, he said Hungary’s refusal does not pose an immediate threat to the timeline, as the Commission is still preparing to raise funds on international financial markets, according to European Pravda.

“In December, all EU leaders, including Hungarian Prime Minister Orbán, agreed to support the loan,” Dombrovskis said, adding that Hungary, along with Slovakia and the Czech Republic, is not participating in the financial guarantees for the package. “We expect them to honor this agreement.”

The Commission aims to begin disbursing the first tranche of the loan in early April 2026.

Earlier, it was reported that the EU countries were unlikely to reach agreement on a new sanctions package against Russia at the February 23 foreign ministers’ meeting due to Hungary’s continued resistance.

It was reported that a consensus would not be achieved on the proposed 20th sanctions package, which several member states had hoped to adopt in time for the fourth anniversary of Russia’s full-scale invasion of Ukraine, which began on February 24, 2022.

Help Ukrainian Units Hold the Drone Line

Download APP