EU launches procedure to unblock €90bn Ukraine loan and new Russia sanctions

Key Points:

• The European Union has initiated the internal process to release a €90 billion loan to Ukraine and approve the 20th sanctions package against Russia, following months of blockage primarily due to disputes involving Hungary and Slovakia.
• The process began with a written procedure among EU ambassadors, allowing member states 24 hours to raise objections, with a final decision expected by Thursday afternoon, though Hungary or Slovakia could still veto the measures.
• The deadlock centers on the Druzhba oil pipeline, damaged by Russian drones and recently repaired by Ukraine, with Hungary and Slovakia demanding its reopening before lifting their vetoes.
• Hungary's outgoing Prime Minister Viktor Orbán had blocked the loan over the pipeline issue, but his recent electoral defeat and the resulting political transition in Hungary have paved the way to resolve the impasse.
• The sanctions package also faces challenges due to concerns from Mediterranean countries over a maritime ban on Russian oil tankers, and the lack of a G7 agreement complicates the full implementation of these measures.