EU Edges Closer to Breakthrough on Ukraine Loan Amid Oil Pipeline Drama

EU envoys met in Brussels on Wednesday, largely optimistic about the approval of a €90 billion loan to support Ukraine's military and financial needs for the next two years. A crucial obstacle remains: Hungary's veto, which hinges on a resumption of Russian oil supplies through Ukraine.

The package, originally agreed in December, remains stalled as Hungary insists on receiving Russian oil before unblocking the funds. Ukraine has completed repairs on the vital Druzhba pipeline, but Hungarian Prime Minister Viktor Orbán, outgoing after a recent election defeat, requires assurance before approving the deal.

Under Cyprus's EU presidency, a formal procedure is underway, potentially leading to a resolution as EU leaders gather in Cyprus. Foreign policy chief Kaja Kallas expressed cautious optimism for an agreement. Hungary and Slovakia are also resisting new EU sanctions against Russia, linked to the oil supply issue.

(With inputs from agencies.)