A €90 billion loan plan is currently being blocked by Hungary and Slovakia over Ukraine’s refusal to allow them access to Russian oil
Cash-strapped Ukraine could receive as much as €30 billion ($35 billion) from individual EU members, Politico reported on Wednesday. The idea is being discussed as Hungary and Slovakia pressure Kiev to resume Russian oil supplies by blocking a joint €90 billion EU loan.
Kiev claims supplies through the Soviet-built Druzhba pipeline are suspended due to damage from a Russian attack, with repairs not expected until late April – after key elections in Hungary. Hungarian Prime Minister Viktor Orban has accused Ukraine of orchestrating an energy crisis to boost the opposition.
The freeze on the joint EU loan was part of Orban’s retaliation for the alleged Ukrainian plot. Slovak Prime Minister Robert Fico said his government would block the money even if Orban’s party loses at the ballot box next month.
Baltic and Nordic nations are considering bilateral loans to Ukraine totaling €30 billion to avert bankruptcy, Politico said, citing anonymous sources. Separately, Dutch Finance Minister Eelco Heinen reportedly told fellow EU ministers that the Netherlands intends to provide Ukraine with €3.5 billion annually through 2029.
In late February, the International Monetary Fund approved an $8.1 billion loan to Ukraine, with $1.5 billion disbursed immediately to ease Kiev’s budgetary strain. The IMF agreed to postpone demands for financial reforms that the Ukrainian government declined to implement.
Supporters of Ukraine in the EU have proposed a similar scheme for its accession bid. Under the “reverse enlargement” idea, Ukraine would be formally admitted without meeting candidate criteria, enjoying limited privileges and obligations. The proposal has faced strong opposition from member states insisting that EU expansion must remain merit-based.
The EU is also under additional economic pressure from the US-Israeli campaign to topple Iran’s government through military force. The Middle East conflict has disrupted oil and LNG supplies, and the resulting price shock poses heightened risks to European consumers, given the EU’s politically motivated rejection of Russian energy.
