Ukraine resumes exporting Russian oil to Europe after EU loan blockage lifted

EU Approves $106 Billion Loan for Ukraine Amid Resumption of Oil Deliveries

The European Union has given preliminary approval for a 90-billion-euro loan to support Ukraine’s economy, following a months-long standoff over the stalled operations of a war-damaged pipeline transporting Russian oil through Ukraine. The EU diplomats meeting in Brussels on Wednesday agreed to move forward with the loan, coinciding with the resumption of Russian oil deliveries via the Druzhba pipeline to Hungary and Slovakia.

According to Hungarian oil group MOL, Kyiv has confirmed that oil is flowing through the pipeline, which is expected to reach Hungary and Slovakia by Thursday. Slovak Economy Minister Denisa Sakova stated on Facebook that the first shipments are anticipated in the early hours of Thursday. The development allows Hungary to lift its longstanding veto on the EU loan, with all 27 member states now expected to formally approve it by Thursday.

The EU had agreed to the loan last year to maintain Ukraine’s liquidity through 2026 and 2027. However, outgoing Hungarian Prime Minister Viktor Orban and the Slovak government had blocked it due to disagreements over pipeline repairs. The situation has changed since Orban lost Hungary’s parliamentary election on April 12, with the new leader of the winning party indicating that he will no longer block EU funds for Kyiv.

The resumption of oil deliveries and approval of the loan are expected to provide a financial lifeline to Ukraine, which is facing over four years of conflict with Russia. The EU is also set to approve a new round of sanctions on Russia, targeting its energy, banking, and trade sectors.

Source: Al Jazeera