Orban’s veto blocks 90 billion EU loan to Ukraine

All useless: the loan to Ukraine remains blockedtogether with the twentieth package of sanctions against Russia, pending the political elections that will be held in Hungary on April 12th. The discussion between EU heads of state and government on the 90 billion euro loan to Ukraine therefore ended early, in Brussels, with the approval of the conclusions a 25, without Hungary and without even Slovakia, as had already happened last December. It has been a long time, however, that the European Council has not approved unanimous conclusions on Ukraine, since Hungary slipped away a long time ago.

“The Hungarian position is very simple – reiterated Orban, arriving at the European Council – we are ready to support Ukraine when we get our oil back, which is blocked” by the Ukrainians. No oil, no money: no oil, no money, as Orban has been repeating for days, in all sorts of ways. The conclusions approved today, 17 points, begin by underlining, in point 2, that the text is “firmly” supported by “25 heads of state or government”. Technically, no matter how solid the support of the 25, if they are not at 27, they are not conclusions of the European Council: they do not have the same legal value and signal the existence of a division between leaders.

Ukrainian President Volodymyr Zelensky connected with the 27 via video conference to underline that “for three months now, Europe’s most important guarantee of financial security for Ukraine has not worked: the 90 billion euro support package for this year and next. For us it is fundamental“.

Nothing to do: Orban and Fico have veto maintainedas predicted the day before by diplomatic sources. The fact that Zelensky went so far in recent days as not too covertly to threaten the Hungarian prime minister with death did not help to resolve the impasse, something which Orban immediately exploited in the election campaign. Given a disadvantage in some polls compared to Tisza’s rivals, facing the risk of losing Orban’s power he doesn’t look anyone in the face: to live for the first time

During the discussion that followed Zelensky’s speech, the President of the European Council Antonio Costa, as reported by EU sources, addressed the issue of Hungary’s behavior regarding the loan to Ukraine, “decided by consensus” by the European Council in December, with the support of “all” the heads of state and government, including Orban and Fico. As already done in previous exchanges with the Hungarian, Costa stated that this type of behavior is “unacceptable” and which violates the principles of good faith and sincere cooperation enshrined in the treaties.

The other leaders also expressed their disappointment to Orban. There is very little, however, that Costa and the heads of state and government can do, apart from protest: without the green light from Hungary (and Slovakia), it is impossible amend the regulation on the MFF 2021-27, which is essential to make the 90 billion euro loan to Ukraine, guaranteed by the EU budget, agreed last December and which should take place through strengthened cooperation, at 24 (without Hungary, Slovakia and the Czech Republic).

The reason for the veto is, at least officially, the issue of the Druzhba oil pipeline, damaged by a Russian bombing at the end of January. The pipeline, built by the USSR to bring oil from the Urals and Siberia to the Comecon countries, supplied Hungary and Slovakia with crude oil before being bombed by the Russians, by virtue of an exception to the sanctions taken by the two countries, without access to the sea.

The Hungarians claim that only one warehouse would have been damaged, and that the pipeline could be repaired within days if the Ukrainians wanted it. They also accused Kiev of purposely delaying the repair, to influence the April 12 vote, in cahoots with the EU. President Volodymyr Zelensky, under strong pressure from the Union’s leaders, said that he will repair it, thanks to European funds and aid, but that it will take “a month and a half”. The European Commission, whose president Ursula von der Leyen had said it had alternative solutionswhich is then tested by facts they did not materializesent a mission to Ukraine to check the status of the pipeline.

For Costa, an EU source recalls, the situation of the Druzhba oil pipeline is a different issue from the loan. Its restoration depends solely on Ukraine’s ability to repair it and Russia’s willingness not to destroy it again. Costa, the source continues, is collaborating with the Ukrainian authorities to provide them with “assistance” and President Zelenskyy has “just committed to fully restoring the flow of oil as soon as possible” and to “fully respect” Ukraine’s role as “reliable energy partner” of the EU.

Costa also recalled that some public statements by President Zelensky about the Hungarian Prime Minister are “unacceptable” and that “this escalation is not in anyone’s interest”. All useless: Orban hasn’t moved an inchcontinuing to brandish the veto, as he has done regularly for years on the most varied occasions. In vain did German Chancellor Friedrich Merz publicly reproach him that “the principle that regulates the functioning of the European Union is that of loyalty and reliability. And I take it for granted that all the member states of the European Union respect it”.

Belgian Prime Minister Bart De Wever has indicated that the release of the loan to Ukraine will most likely have to wait until after the elections in Hungary, scheduled for April 12. “I have the impression that this is part of his election campaign,” he noted. After scolding Orban in private and in public, President Costa preferred to proceed with the other items on the agenda, given that the Hungarian Prime Minister he didn’t bat an eyelid. In any case, as a diplomatic source explained, Ukraine still has some time, thanks to an agreement with the IMF, before it runs out of funds. It can survive until after April 12 without defaulting. Provided that Orban actually loses the elections. (by Tommaso Gallavotti)