EU Envoys Hope to OK Loan for Ukraine  04/22 06:19

   

   BRUSSELS (AP) -- European Union envoys gathered on Wednesday with the 
majority cautiously optimistic that a massive loan to help meet Ukraine's 
military and financial needs for the next two years may soon be approved after 
months of deadlock.

   At a meeting in Brussels, the envoys assessed whether Hungary might lift its 
veto on the 90-billion-euro ($106 billion) loan package, which Ukraine 
desperately needs to prop up its war-ravaged economy and help keep Russian 
forces at bay.

   Hungary has insisted that it must start receiving supplies of Russian oil 
again via Ukraine before it will unblock the funds. Hungary and Slovakia rely 
on Russian oil to meet their energy needs.

   They have both accused Ukraine of failing to repair a damaged pipeline that 
ships the oil. Ukraine and most of its European backers oppose imports of 
Russian oil, which have helped to fund President Vladimir Putin's war, now in 
its fifth year.

   Ukraine gives its green light

   In a post on social media, President Volodymyr Zelenskyy said Tuesday that 
Ukraine has now completed repairs on the Druzhba pipeline. He said it "was 
damaged by a Russian strike" but "the pipeline can resume operation."

   But outgoing Hungarian Prime Minister Viktor Orbn has signaled that he 
would only approve the Ukraine loans once the oil starts flowing again, so the 
envoys are awaiting a clear signal from Budapest that his veto will be lifted. 
Orbn, who has repeatedly blocked EU aid to Ukraine, lost an election on April 
12 and is due to leave office next month, to be replaced by the pro-European 
opposition leader Pter Magyar.

   Cyprus, which currently holds the EU's rotating presidency, intends to 
launch a written procedure to approve the final piece of the puzzle in the loan 
package. That would require Hungary or any other objecting nation to state in 
writing why they oppose it.

   Such procedures are often left open for 24 hours, sometimes more, and it was 
not immediately clear what time frame Cyprus would use. It ultimately means 
that final approval could come on Thursday, when EU leaders meet for a summit 
in Cyprus.

   Cautious optimism after months of delay

   Given the many false dawns in recent months, EU foreign policy chief Kaja 
Kallas was reluctant to speculate on the outcome when quizzed by reporters on 
Tuesday. "We expect an agreement in 24 hours, so I don't want to jinx it," she 
said.

   The 27-nation EU had originally intended to use Russian assets frozen in 
Europe as collateral for the loan. But that option was blocked by Belgium, 
where the bulk of the frozen assets are held.

   In December, the Czech Republic, Hungary and Slovakia agreed not to stop 
their EU partners from borrowing the money on international markets as long as 
the three countries did not have to take part in the scheme.

   But Orbn angered the other 24 countries by later reneging on that deal over 
the pipeline dispute and as campaigning heated up ahead of the election that he 
lost in a landslide.

   In a Tuesday evening address, Zelenskyy said "there can be no grounds for 
blocking" the loans anymore. "The EU asked Ukraine to repair the Druzhba oil 
pipeline, which had been destroyed by Russia. We have repaired it."

   Foreign Minister Andrii Sybiha told reporters that Ukraine has done its 
part. "We have completed everything -- there is a date (set), and the 
infrastructure has been repaired."

   New sanctions on Russia

   The EU has also been trying since February to push through a new raft of 
sanctions against Russia, which Hungary and Slovakia have been blocking. The 
measures could take longer than the loan to approve.

   Slovak Foreign Minister Juraj Blanr said Tuesday that his country would 
only agree once "Russian oil arrives in Slovakia through the Druzhba pipeline. 
I can state that we do not have such information yet."

   Economy Minister Denisa Sakov said Slovakia expects oil supplies to resume 
early on Thursday.

   Sakov said that according to information from Ukrtransnaft, a company that 
operates the pipeline on Ukrainian territory, oil began entering the Druzhba 
pipeline again on Wednesday.