European Union Approves 90 Billion Euro Loan for Ukraine, Imposes New Sanctions on Russia

EU Approves 90-Billion-Euro Loan for Ukraine, New Sanctions Package Against Russia

The European Union has given final approval to a 90-billion-euro loan for Ukraine and a new round of sanctions against Russia. The measures were signed off after Hungary and Slovakia dropped their objections when Ukraine restarted oil flows following repairs to the damaged Druzhba pipeline.

As part of the agreement, the EU will provide financial support to Ukraine, which has been struggling with budget black holes due to the ongoing conflict with Russia. Ukrainian President Volodymyr Zelenskyy welcomed the approval, stating that it is an “important day for our defence and relations with the European Union.”

The loan, worth 90 billion euros or $105 billion over two years, will be disbursed in tranches, with the first payment expected by May or June. The EU has also signed off on a new package of sanctions against Russia, which targets the country’s energy, banking, and trade sectors.

The measures include restrictions on Russian oil exports, curbs on cryptocurrency traders, and limits on the use of certain tankers to skirt export restrictions. However, the EU has stopped short of imposing a full maritime service ban for vessels carrying Russian crude, citing hopes that G7 partner nations will take action at a later date.

Additionally, the EU has announced it will stop sales of certain machinery to Kyrgyzstan to prevent the products from being sold to Russia. This marks the first time the bloc has used a mechanism to halt entire categories of exports to a specific country to avoid sanctions circumvention.

Source: Al Jazeera