Big Blow To Ukraine: Hungary Halts 90 Billion Euro EU Loan During Russia War

New Delhi: Once again the rift within the European Union has become clearly visible. Hungary has put a hurdle on the proposed economic aid of 90 billion euros to Ukraine. This step has been taken at a time when Kiev needs financial support amid the war. Hungary has made it clear that it will not give the green signal to this package until Russian oil supplies normalize.

Why is the matter stuck on oil supply?

The issue is related to the Druzhba pipeline, which carries oil from Russia to Central Europe. Recently the supply on this route has been disrupted. Hungary says that a large part of its energy needs depend on this pipeline. Due to stoppage of oil flow, there has been increased pressure on both prices and supply.

Why did Hungary stop the aid package?

Budapest argues that it is not practical for it to provide huge financial aid to Ukraine amid an energy crisis. The government says that first the oil supply should be restored, only then can any major economic decision be agreed upon. Hungary has called it a matter of national interest.

How did Ukraine respond?

Kyiv says the damage to the pipeline occurred in war-related circumstances and the repair process is ongoing. Ukraine has alleged that the energy issue is being used as a tool of political pressure. According to him, stopping the aid package could be a big blow to the war-torn economy.

What is the situation within the EU?

Many member countries of the European Union have expressed disagreement with this decision. He believes that unity in support of Ukraine is necessary. Some countries have indicated that if consensus continues to be hampered, alternative avenues may be explored.

What is the significance of the 90 billion euro package?

This package is proposed to meet Ukraine's military and budgetary needs. Experts say this would have helped Kiev maintain stability in the coming months. In case of delay, Ukraine may have to face additional financial pressure.

Now what next?

Talks are continuing at the diplomatic level. Efforts are being made to find solutions to both the issues of energy supply and assistance. At present it is clear that amid the war, differences within Europe regarding energy and strategy are deepening. It will be decided in the coming days whether this conflict will result in an agreement or will intensify.