Ukraine edges closer to budget oblivion as Orban refuses to budge on 90-billion loan
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Hungary refused to back down in opposing a financial lifeline to Ukraine at a summit in Brussels on March 19, putting Kyiv at risk of running out of cash by the end of spring unless a resolution or other funding can be found.
Hungarian Prime Minister Viktor Orban continued to oppose a 90-billion-euro loan to Ukraine at a gathering of European leaders in Brussels today, according to two EU diplomats familiar with today's discussions, which he has tied to Russian oil transit through the Druzhba pipeline.
All 27 EU countries unanimously agreed in December last year to provide a 90-billion-euro ($104 billion) loan to Ukraine to cover two-thirds of Ukraine's needs over 2026–2027. Kyiv relies on foreign assistance to keep the state afloat and fund its war effort.
Ukraine says that Russian air strikes damaged the Druzhba pipeline in late January. Hungary and Slovakia accuse Kyiv of slowwalking repairs.
A European delegation arrived in Kyiv yesterday to inspect the pipeline, Serhii Koretskiy, CEO of Ukraine's state gas company Naftogaz, said on March 18.
Koretskiy said that he met with the delegation, alongside Ukrtransnafta, the Ukrainian company that manages oil transport through the country.
"Alongside the management of Ukrtransnafta, we provided partners with detailed information on the consequences of the Russian attack on the Druzhba pipeline infrastructure," Koretskiy posted on social media.
"We outlined the current situation and presented a comprehensive reconstruction plan."
The European diplomats also said that both Hungary and Slovakia blocked the EU's 20th sanctions package against Russia. European countries had hoped to approve the package last month to mark the fourth anniversary of Russia's full-scale invasion of Ukraine.
Ukraine has no good options to replace the funds, should Hungary keep the funds frozen.
