Hungary drops veto, clearing path for $106 billion EU loan to Ukraine [View all]

Source: msn/CBS News

12h


The European Union issued preliminary approval on a $106 billion loan for Ukraine Wednesday, after Hungary lifted its months-long veto on the funds.

Most of the funding will go toward Ukraine's defense sector, which officials in Kyiv say is central to Europe's long-term security. The move may also signal a more constructive relationship with the bloc following the ouster of Hungarian Prime Minister Viktor Orbán earlier this month.

The loan, originally introduced in December, had been held up by a dispute between Hungary and Ukraine over an oil pipeline that runs through Ukrainian territory. Orbán vetoed the funds in February, accusing Ukraine of shutting down the Druzhba Pipeline, which delivers Russian oil through Ukraine to Hungary and Slovakia.

But on April 12, Orbán lost Hungary's parliamentary elections to center-right challenger Peter Magyar, who took a more supportive stance toward Ukraine during the campaign. Ukrainian President Volodymyr Zelenskyy says that the Druzhba Pipeline is now repaired and that Russian oil flows to Hungary and Slovakia have resumed.

Read more: https://www.msn.com/en-us/news/world/hungary-drops-veto-clearing-path-for-106-billion-eu-loan-to-ukraine/ar-AA21v95S