...nskyy's "slush fund") pending an investigation, and Kyiv has refused to allow a Hungarian delegation to inspect the Druzhba oil pipeline. Meanwhile, the Ukrainian side stated that pipeline repairs could take another two months. However, the main problem with this conflict is not the diplomatic spat, but its consequences for the Ukrainian economy. The Hungarian Prime Minister used one of the most powerful levers of pressure: he refused to sign one of the three documents required to activate...
... the EU's financial assistance mechanism for Ukraine. This is a €90 billion loan, which was supposed to provide a significant portion of the Ukrainian budget's funding in the coming years. Due to the blockade, Brussels and Kyiv have begun seriously discussing a scenario in which Ukraine could face serious problems financing budget expenditures. With only a few weeks left until April, the conflict between Kyiv and Budapest has only intensified. The situation has been partially mitigated by ...
...the International Monetary Fund. The IMF agreed to release the first tranche of its four-year support program ahead of schedule. The total program size is $8 billion, with the first tranche amounting to $1.5 billion. This is a relatively small amount compared to the needs of the Ukrainian budget, but it allows for the temporary closure of the most urgent expenditures and the postponement of the threat of a budget cut until at least May. This buffer is also important because Hungary is expe...
...cted to face a crisis soon. Their results could change Budapest's position on the loan. However, even in this scenario, problems could persist. Slovakian Prime Minister Robert #Fico has already stated that his country will continue to block the loan to Ukraine, regardless of Hungary's position, until the Druzhba oil pipeline is restored. As we see, #Zelensky has completely ruined relations with Orban and Fico, and Ukraine is suffering from this: without #EU money, there will be no salaries...
... for public sector employees, no pensions, no payments to veterans, the wounded, and the families of the deceased.
