EU Moves Toward Suspending Cooperation, Sanctions on Israel ‍and Ukraine Loan

Darwin, 21 April: 

European Union officials have said they expect progress this week on key issues related to Ukraine and Israel after Hungarian Prime Minister Viktor Orban was voted out of office. Orban’s government had previously blocked these initiatives.

Officials said on Monday that Orban’s departure has opened the way for the EU to release a €90 billion ($106 billion) loan to Ukraine and impose sanctions on violent Israeli settlers.

According to Al Jazeera, the loan is critically important for Ukraine, as Kyiv needs it to maintain its defense against Russia’s aggression. Cyprus, which currently holds the EU presidency, said the loan could be approved at a meeting on Wednesday.

An official told AFP that “the final element needed to authorize the disbursement of the €90 billion loan to Ukraine” will be on the agenda.

At a meeting of diplomats on Wednesday, efforts will be made to reach consensus on necessary amendments to the EU budget. This will be followed by a written procedure for the loan’s final approval. Hungary’s new leader Peter Magyar is preparing to take office, which is expected to speed up the process.

Orban, widely known as the EU’s main spoiler, had held up the funds amid a dispute with Ukraine. The disagreement centered on the suspension of Russian oil supplies through the Druzhba pipeline via Ukrainian territory. Ukraine said the pipeline was shut down due to a Russian attack, while Orban accused Ukraine of halting it.

However, Orban’s departure has created opportunities for progress on multiple fronts.

Peter Magyar has said he is ready to work constructively with the EU and on Monday called for the reopening of the Druzhba pipeline.

Ukrainian President Volodymyr Zelenskyy said in an interview broadcast the same day that the pipeline would resume operations by the end of April, increasing the likelihood of the loan being approved.

EU foreign policy chief Kaja Kallas said last week on the microblogging platform X that it is “high time” to unblock the loan and move forward with a new sanctions package against Russia.

Last week, EU Enlargement Commissioner Marta Kos said at an event with Ukrainian Finance Minister Sergii Marchenko that the EU would definitely deliver the loan to Ukraine following the Hungarian election.

Measures Against Israel Appear Imminent

On the Middle East front, Kallas said on Monday that the EU will assess whether it can move forward with measures against Israel. These include the possible suspension of the EU-Israel cooperation agreement and proposals to impose sanctions on hardline Israeli settlers in the occupied West Bank.

Spanish Prime Minister Pedro Sanchez has pushed for suspending the agreement. The issue is on the agenda of Tuesday’s meeting of foreign ministers in Luxembourg.

Suspending the entire agreement would require unanimity, but removing a specific part related to facilitating trade would only require majority support among EU member states.

Orban had long vetoed sanctions on Israeli settlers in the West Bank and was known as a strong supporter of Israel. His departure has increased the likelihood of progress on the issue.

Kallas said on Monday that one country had been blocking these sanctions—an apparent reference to Orban.

She added, “Now that country has had elections and will have a new government. I will not speak for the new government, but we can certainly review these policies and see whether there is a new approach.”

However, taking action against Israel would also require a shift in position from major EU countries such as Germany and Italy. Italy has already signaled a tougher stance by suspending a defense agreement with Israel.