The European Union has formally initiated the internal procedure to approve a €90 billion financial assistance package for Ukraine alongside its 20th round of sanctions against Russia, signaling a potential breakthrough in a months-long political impasse involving Hungary and Slovakia.
The so-called “written procedure,” launched during a meeting of EU ambassadors in Brussels, allows member states a 24-hour window to raise objections. If no country exercises its veto, the measures could be formally adopted as early as Thursday afternoon, according to officials familiar with the process.
Breakthrough After Months of Deadlock
The financial aid package and sanctions had been stalled primarily due to objections from Hungary and Slovakia. Both countries had tied their approval to the restoration of the Druzhba oil pipeline, a critical Soviet-era energy artery that supplies Russian crude oil to Central Europe.
The pipeline was damaged earlier this year in what Ukrainian authorities described as a Russian drone attack. However, Ukrainian President Volodymyr Zelenskyy recently confirmed that repairs have been completed and oil flows are expected to resume imminently.
“The EU asked Ukraine to repair the Druzhba oil pipeline… We have repaired it. We hope the EU will also deliver on the agreed commitments,” Zelenskyy said in a recent address.
This development appears to have eased tensions significantly, with EU diplomats suggesting that Hungary and Slovakia are now unlikely to block the measures.
Hungary’s Political Shift Changes Dynamics
A major turning point in the negotiations has been the political transition in Hungary. Outgoing Prime Minister Viktor Orbán had been a vocal critic of Ukraine, accusing Kyiv of deliberately disrupting oil flows for political leverage. His government repeatedly vetoed EU initiatives related to Ukraine, contributing to prolonged delays.
However, Orbán’s recent electoral defeat by opposition leader Péter Magyar has altered the political landscape. Magyar campaigned on restoring Hungary’s relationship with the EU and unlocking frozen EU funds tied to rule-of-law concerns. His victory has raised expectations in Brussels that Hungary will adopt a more cooperative stance moving forward.
Slovakia Signals Conditional Support
Slovakia, under Prime Minister Robert Fico, had also threatened to block the sanctions package unless the Druzhba pipeline resumed operations. Fico reiterated this position earlier this week, emphasizing that Slovakia’s approval hinges on the “genuine reopening” of oil flows.
With repairs now complete, Slovakia is expected to lift its veto, clearing the path for unanimous approval—a requirement for EU foreign policy decisions.
Details of the Sanctions Package
The proposed 20th sanctions package targets key sectors of Russia’s energy and shipping industries. Among the most notable measures is a proposed ban on maritime services for Russian oil tankers, a move aimed at tightening restrictions on Moscow’s ability to export crude oil globally.
However, this provision has faced resistance from maritime-heavy EU nations such as Greece and Malta, which have expressed concerns over the economic impact on their shipping industries. As a compromise, the maritime ban has been made conditional on a broader agreement among the Group of Seven (G7) nations.
Transatlantic Tensions Complicate G7 Coordination
Achieving consensus at the G7 level remains uncertain. The United States recently extended sanctions relief for Russian oil, a decision that has frustrated European leaders seeking a more unified and कठोर stance against Moscow.
This divergence highlights ongoing transatlantic tensions over how best to balance economic stability with geopolitical pressure on Russia. Without G7 alignment, some elements of the EU’s sanctions package may be delayed or diluted.
Strategic Importance of the €90 Billion Loan
The €90 billion loan package is seen as vital for Ukraine’s economic stability amid its ongoing conflict with Russia. The funds are intended to support government operations, infrastructure repair, and broader economic resilience.
For Brussels, unlocking the loan is not just a financial decision but a strategic signal of continued support for Kyiv. It also underscores the EU’s commitment to maintaining pressure on Russia through coordinated sanctions.
What next?
With the Druzhba pipeline issue nearing resolution and political shifts in Hungary reducing resistance, EU officials are optimistic that both the financial aid package and sanctions will soon be approved.
If finalized, the move would mark a significant step in reinforcing European unity on Ukraine while intensifying economic pressure on Russia. However, challenges remain—particularly in aligning with G7 partners and managing internal EU divisions over the scope of sanctions.
The coming days will be crucial in determining whether the EU can translate this momentum into concrete action, ending months of diplomatic gridlock and delivering much-needed support to Ukraine.
