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EU approves Ukraine loan after Hungary lifts pipeline veto

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EU approves Ukraine loan after Hungary lifts pipeline veto
Key Points
  • EU approves first part of billion-euro loan to Ukraine after Hungary lifts veto linked to Druzhba pipeline flows.
  • Conflicting claims exist about Druzhba pipeline's operational status between Hungary/Slovakia and Ukraine.
  • Pipeline damage from Russian attacks and repair delays impacted loan approval and EU energy security.

Member states have approved the initial tranche of the EU's billion-euro loan package for Ukraine, according to multiple reports. A key factor in Hungary lifting its veto was Ukraine allowing oil to flow from Russia to the EU via the Druzhba pipeline, major media sources indicate. This development marks a significant step in EU support for Kyiv amid Russia's ongoing war.

Conflicting claims surround the operational status of the Druzhba pipeline. Hungary and Slovakia assert the pipeline is operational and being shut for political reasons. In contrast, Ukraine maintains the Druzhba pipeline remains damaged and cannot resume deliveries. President Volodymyr Zelenskyy stated that Ukraine has completed repairs on the Druzhba oil pipeline and is preparing to resume flows, but added there is no guarantee Russia will not target the pipeline infrastructure again.

The dispute stems from damage inflicted two months ago when Russian drone attacks halted oil supplies to Hungary and Slovakia, according to Ukrainian officials. Repairs to the Druzhba pipeline delayed approval of the €90 billion EU loan to Ukraine, multiple reports confirm. The status of the pipeline has become a hot topic of contention since a Russian drone attack was reported on 27 January, according to research.

European Commission deputy chief spokesperson Olof Gill urged Hungarian Prime Minister Viktor Orbán and Ukrainian President Volodymyr Zelenskyy to dial down inflammatory rhetoric over the Druzhba pipeline. The Commission is examining possible financial support to speed up repairs of the Druzhba pipeline, according to spokesperson Olof Gill. Top EU officials are cautiously optimistic the loan might be approved as soon as Wednesday, according to major media reports, though confusion exists about whether approval has already occurred or remains pending.

Hungary has taken aggressive actions amid the pipeline dispute. Orbán vetoed a €90 billion EU loan to Ukraine in response to halted oil supplies. Hungary detained a bank cargo heading to Ukraine carrying $40 million, €35 million, and 9 kg of gold, which Ukraine condemned as state terrorism. Hungarian PM Viktor Orbán threatened to cut gas supplies to Ukraine before being unseated, according to major media reports.

Accusations of political obstruction have intensified. Hungary and Slovakia accused Kyiv of deliberately obstructing Russian deliveries. The Druzhba pipeline dispute has pitted Orbán and Zelenskyy in a head-to-head confrontation without precedent, according to research. European Commission spokesperson Olof Gill emphasized that such language is not acceptable and there must not be threats against EU member states.

state terrorism

Kyiv, Ukrainian government

Complications emerged regarding loan collateral arrangements. The EU intended to use frozen Russian assets as collateral for the loan, but this was blocked by Belgium, according to multiple reports. This blockage created additional hurdles in finalizing the financial support package for Ukraine.

In unrelated Swedish security incidents, a man was arrested at a protected facility in Värtahamnen, Stockholm, suspected of serious unlawful intrusion, violation of the Protection Act, and theft, according to police. Meanwhile, a missing boy in Borlänge has been found and is reportedly physically unharmed, according to police spokesperson Anders Dahlman.

Swedish authorities are investigating a suspected serious crime in a park on Södermalm, Stockholm, with no suspects arrested yet, according to police spokesperson Daniel Wikdahl. In a separate case, a Russian commander, detained since March 10 on suspicion of using false documents, has had his detention lifted because the claim of lacking knowledge could not be disproven, according to senior prosecutor Adrien Combier-Hogg.

A crane truck crashed into a pedestrian bridge over Huddingevägen, Fullersta, leading to a full road closure and the driver fleeing the scene, police reported. Additionally, an accident involving multiple cars occurred on E6 in western Trelleborg, according to police.

In maritime security developments, a ship was fired upon by Iran's Revolutionary Guard northeast of Oman, with the bridge damaged but no crew injuries, according to the UK Maritime Trade Operations. This incident highlights ongoing tensions in Middle Eastern waters.

The EU loan approval represents a critical moment in EU-Ukraine relations and European energy security. European Commission spokesperson Olof Gill stated that the objective is to calm rhetoric and deliver on goals including the loan and energy security.

Several unknowns persist in the pipeline and loan discussions. What specific evidence or intelligence Hungary and Slovakia have to claim the Druzhba pipeline is operational remains unclear, as does Ukraine's evidence proving the pipeline remains damaged. The exact timing for full EU loan approval and disbursement has not been confirmed, nor have the precise terms under which Hungary lifted its veto. The current status of the detained bank cargo—whether it has been released or confiscated—also remains uncertain.

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EU approves Ukraine loan after Hungary lifts pipeline veto | Reed News