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EU urges calm as Hungary-Ukraine pipeline row escalates

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EU urges calm as Hungary-Ukraine pipeline row escalates
Key Points
  • EU urges de-escalation as Hungary-Ukraine tensions spike over Druzhba pipeline and blocked loan
  • Ukraine completes pipeline repairs, but uncertainty remains over resumption and Russian threats
  • Hungary detains Ukrainian bank cargo; Kyiv calls it 'state terrorism'

The European Commission has urged Hungarian Prime Minister Viktor Orbán and Ukrainian President Volodymyr Zelenskyy to dial down inflammatory rhetoric over the Druzhba pipeline, according to the European Commission. Orbán vetoed a €90 billion loan to Ukraine that EU leaders had signed off on in December, and threatened to use military force to break the Ukrainian oil blockade, Euronews reported. Zelenskyy suggested giving Orbán's phone number to Ukrainian soldiers to convince him to lift the veto, Euronews reported, a remark Budapest condemned as a 'death threat'.

Ukraine has completed repairs on the damaged Druzhba pipeline and is preparing to resume flows, Zelenskyy said. He warned there is no guarantee Russia will not target the pipeline infrastructure again. Russian oil supplies to Hungary and Slovakia have been halted for two months after Russian drone attacks damaged the pipeline, Ukrainian officials said. However, Hungary and Slovakia accused Kyiv of deliberately obstructing Russian deliveries. The dispute hinges on whether the pipeline is genuinely damaged or operational: if damaged, Ukraine's position is justified; if operational, the accusations of deliberate obstruction hold weight. Zelenskyy said he is reluctant to allow Russian oil to continue transiting through Ukraine.

We expect an agreement in 24 hours, so I don’t want to jinx it.

Kaja Kallas, EU foreign policy chief

Hungary detained a bank cargo heading to Ukraine carrying $40 million, €35 million and 9 kg of gold in reserves, according to multiple reports. Kyiv condemned the detention as 'state terrorism', according to Kyiv.

The European Commission is examining possible financial support to speed up repairs of the Druzhba pipeline, the European Commission said. Top EU officials are cautiously optimistic that the loan scheme might be approved as soon as Wednesday. EU foreign policy chief Kaja Kallas said she expects an agreement on the loan in 24 hours. European Council President Antonio Costa thanked Zelenskyy for repairing the pipeline and restoring its operation.

We expect certain positive decisions tomorrow on the 90-billion loan (in euros). Ukraine really needs this loan.

Kaja Kallas, EU foreign policy chief

The EU had originally intended to use Russian assets frozen in Europe as collateral for the loan, but that was blocked by Belgium. EU's foreign chief Kaja Kallas is hopeful that Orbán may lift his veto at Wednesday's ambassador meeting. Swedish Foreign Minister Maria Malmer Stenergard expects Ukraine to receive the loan by mid-May. The European Commission aims for the loan to be disbursed as soon as possible within the second quarter.

The opening around the loan has raised hopes that Hungary will stop opposing the EU's 20th sanctions package against Russia. Malmer Stenergard is disappointed that the 20th sanctions package has been stalled since February and considers it too weak.

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EU urges calm as Hungary-Ukraine pipeline row escalates | Reed News