The European Union has formally begun the process to unlock a €90 billion financial support package for Ukraine and to adopt a new round of sanctions targeting Russia. This development signals a potential end to a months-long diplomatic impasse, primarily driven by objections from Budapest.
The so-called written procedure was initiated on Wednesday afternoon during a meeting of ambassadors in Brussels. Member states now have 24 hours to register any final objections. Cyprus, which currently holds the rotating presidency of the EU Council, anticipates the process concluding on Thursday afternoon, paving the way for a final announcement.
Pipeline Repair Paves Way for Deal
The breakthrough follows the restoration of the Druzhba oil pipeline, a Soviet-era infrastructure critical for supplying Hungarian and Slovak refineries. The pipeline was damaged by Russian drone strikes in late January. In his Tuesday evening address, Ukrainian President Volodymyr Zelenskyy confirmed repairs were complete and flows were expected to resume imminently.
"The EU asked Ukraine to repair the Druzhba oil pipeline, which had been destroyed by Russia. We have repaired it. We hope the EU will also deliver on the agreed commitments," Zelenskyy stated.
Outgoing Hungarian Prime Minister Viktor Orbán had blocked the loan for months, accusing Kyiv of deliberately halting oil flows for political reasons. Orbán made the dispute a central theme of his re-election campaign, but was ultimately defeated by opposition leader Péter Magyar, whose platform promised to restore the rule of law and mend relations with Brussels. This political transition in Hungary, the first in 16 years, was crucial in unblocking the stalemate.
The new sanctions package, the EU's twentieth against Russia, had also been held up by Hungary and Slovakia over the same pipeline issue. Slovak Prime Minister Robert Fico stated on Wednesday that his country's veto would only be lifted once oil began flowing again. "The government of the Slovak Republic will not agree to a sanctions package in favour of Ukraine unless there is a genuine reopening of the Druzhba oil pipeline," Fico said.
Sanctions Details and Broader Context
The proposed sanctions include a comprehensive ban on maritime services for Russian oil tankers. However, this specific measure has been made conditional on securing an agreement at the G7 level, after maritime nations Malta and Greece expressed significant reservations about its impact.
While Hungary or Slovakia could still theoretically block the adoption, which requires unanimity, diplomats in Brussels consider this outcome highly unlikely following the pipeline's repair. The move to release funds comes as the EU continues to bolster Ukraine's resilience, a topic underscored by figures like former Finnish Prime Minister Sanna Marin, who has urged the bloc to integrate Ukraine's battlefield lessons into its defence strategy.
The unfolding situation also highlights Europe's complex energy security landscape, where disruptions in one region can have immediate political and economic repercussions across the continent. This was recently illustrated when Kazakhstan halted oil shipments to Germany via Russia, citing a technical disruption. Furthermore, the EU's energy chief has warned of prolonged price hikes stemming from the ongoing Middle East conflict, adding another layer of concern for policymakers.
The approval of this substantial loan package represents a significant reaffirmation of the EU's financial commitment to Ukraine amid the ongoing war. It also demonstrates the intricate, often fragile, negotiations required to maintain unity among twenty-seven member states, each with distinct economic and political considerations, on matters of profound continental security.
