A €90 billion loan plan from Hungary and Slovakia is currently blocked due to Ukraine’s refusal to access Russian oil.
Cash-strapped Ukraine could receive up to €30 billion ($35 billion) from individual EU members, Politico reported 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 that supplies through the Soviet-built Druzhba pipeline have been cut off because it was damaged by a Russian attack, with repairs not expected until the end of April – after key elections in Hungary. Hungarian Prime Minister Viktor Orbán has accused Ukraine of fabricating the energy crisis to bolster the opposition.
The freeze on joint EU debt is part of Orban’s retaliation for the alleged Ukrainian plot. Slovak Prime Minister Robert Fico said his government would freeze the money even if Orban’s party loses at the polls next month.
The Baltic and Nordic countries are considering bilateral loans totaling €30 billion to Ukraine to avoid bankruptcy, Politico said, citing anonymous sources. Separately, Dutch Finance Minister Eelko Heinen also told EU ministers that the Netherlands intends to provide Ukraine with €3.5 billion annually by 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 budget pressures. The IMF agreed to defer demands for economic reforms that the Ukrainian government refused to implement.
Ukraine’s supporters in the EU have proposed a similar plan for its accession bid. under “Reverse Expansion” The idea is that Ukraine is formally recognized without meeting candidate criteria, enjoying limited privileges and obligations. The proposal has faced strong opposition from member states, who insist that EU enlargement should remain merit-based.
The EU is under additional economic pressure from the US-Israeli campaign to overthrow the Iranian government through military force. The Middle East conflict has disrupted oil and LNG supplies and the resulting price shock poses greater risks for European consumers, rejecting the EU’s politically motivated Russian power.
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