The EU has finally signed off a €90 billion (£78 billion) loan to Ukraine after Hungary dropped its veto. The loan – agreed in December but blocked for months by Hungary in a row over an oil pipeline – is “a question of our life, of surviving”, said Ukraine’s president Volodymyr Zelenskyy. Without the money, his country was struggling to manufacture the number of weapons it was capable of producing, he told CNN.
“Ukraine really needs this,” said EU foreign policy chief, Kaja Kallas. “It’s also a sign that Russia cannot outlast Ukraine.”
“European officials had found ways” to get some funds to Ukraine during the delay but this no-interest loan provides “far more substantial financial support”, as Moscow’s full-scale invasion extends into a fifth year, said The New York Times. Ukraine will only need to repay the loan if a future peace deal includes Russia paying reparations.
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Having finally secured the loan, Zelenskyy has renewed calls to restart peace talks with Vladimir Putin, said The Independent – although US mediators are currently “preoccupied with the conflict in Iran”.
A resumption of talks seems unlikely any time soon. Only a few weeks ago, the Russian president gathered key oligarchs behind closed doors and asked them to contribute financially to the war, said independent Russian news outlet The Bell. “We will keep fighting,” its sources reported Putin as saying. “We will push to the borders of Donbas.”
And it’s the question of Donbas that led to the most recent peace talks being “placed on hold”, said political scientist Samuel Charap and military analyst Jennifer Kavanagh in Foreign Affairs. Donald Trump’s administration had “centred the talks on a core bargain”: that Ukraine cede the roughly 20% of the Donbas region it still holds to Russia “in exchange for security commitments from the US and Europe”. This approach exaggerated “the significance of territory for Russia and the importance of Western assurances for Ukraine”. It also neglected to “address the key challenge in ending any war”: convincing each side that “its enemy will really commit to peace”.
What next?
A Kremlin spokesperson has been reported as saying Putin would only meet Zelenskyy “for the purpose of finalising agreements”, said The Guardian. Instead, Russia wants the US to send Trump’s delegates Steve Witkoff and Jared Kushner – who “have repeatedly listened to Putin’s maximalist demands” – to Moscow.
While the EU loan is “sorted”, there is now “another issue altogether”: Ukraine gaining membership of the EU, said Henry Foy in the Financial Times. Zelenskyy has long seen this as key to securing Ukraine’s long-term security and prosperity. “Belligerent public opposition” to the idea from outgoing Hungarian president Viktor Orbán had long “provided a useful shield for many other EU leaders to huddle behind” but, with his departure, “they will be forced to clarify their positions”.
