EU leaders will welcome Ukrainian President Volodymyr Zelenskyy on Thursday in Cyprus to celebrate the release of a 90-billion-euro ($105 billion) loan for Kyiv after a prolonged deadlock.
Preliminary approval for the badly needed money came on Wednesday, but a definitive sign-off is expected by Thursday, before European Union leaders hold talks with Zelensky in Cyprus’s Ayia Napa marina.
The funds were blocked after a bitter row broke out between Hungary’s nationalist premier Viktor Orban and Zelenskyy.
Orban said that he would only lift his veto after Ukraine fixed a pipeline damaged by a Russian strike. After 16 years in power, Orban suffered a crushing election defeat to pro-EU opposition figure Peter Magyar in the April election.
And the standoff was resolved when Zelenskyy said on Tuesday that repairs had been completed and officials were informed on Wednesday that Ukraine had restarted pumping oil to Hungary and Slovakia.
Moscow ally Orban has often posed a challenge to the EU regarding Ukraine, and EU officials anticipate that decisions related to Kyiv will be made more swiftly without his opposition.
Wednesday's green light relieved diplomats. One EU diplomat mentioned that Zelensky’s Cyprus visit is symbolically important because EU money will help support Kyiv against Russia in 2026 and 2027.
Orban, who will only stepdown next month, will not attend meetings in Cyprus on Thursday and Friday, which will be informal with no concrete decisions expected.
Ukraine will not be the only conflict on the menu during the talks in Cyprus, which holds the rotating EU presidency.
They will also discuss the Middle East war and its fallout, including skyrocketing energy prices.
In March, a drone strike on a British base on the Mediterranean island drew Cyprus into the war.
On Friday, European leaders will engage in intensive dialogue with their regional counterparts, as described by a senior EU official.
During a working lunch, they will discuss the situation in Lebanon, where there is currently a ceasefire. More than 2,400 people have been killed and more than a million displaced in Israeli strikes in the country since Iran-backed Hezbollah drew the nation into the war on 2 March.
A key issue for Europe is the Strait of Hormuz, whose effective closure has sent oil prices soaring and affected the supply of jet fuel in Europe.
The official said the bloc was ready to contribute to keep the strait open when the conditions are met, noting that any assistance depended on events.
“We certainly hope that the ceasefire is kept and maintained,” he added.
The European Union’s 2028-2034 budget will also be discussed for the first time, with hopes of securing a final agreement by the end of 2026.
The EU executive wants a bigger budget worth around two trillion euros ($2.3 trillion), though governments are reluctant to pay more.
That’s why, despite the energy shocks, the EU has little wiggle room to spend more, as it must find money to pay off COVID-era loans.
But as with anything related to money in the EU, France and Germany are diametrically opposed, with Paris calling for more European investment and Berlin arguing for fiscal restraint.
The clock is ticking, however. European officials are concerned that if a deal is not reached before France's presidential election in 2027, there is a possibility that a far-right leader could reduce France's contributions to the EU, which is the bloc's second-largest economy.
.jpg "Obama 'Star Wars' center reflects former president’s vision, legacy")
