Ukraine: Economy

EU

Hungary blocks a major European Union loan and new sanctions against Russia

Hungary, led by Prime Minister Viktor Orbán, used its veto power to block a 90-billion-euro European Union loan package for Ukraine. Orbán also blocked a new, 20th package of EU sanctions against Russia. Orbán linked the vetoes to a dispute over the Druzhba oil pipeline, claiming Ukraine has not repaired damage to the section that supplies Hungary. In response, EU leaders accused Hungary of undermining support for Ukraine and are reportedly considering ways to work around the veto. Ursula von der Leyen, the European Commission president, said the loan would happen 'one way or the other'. The blockages occurred just before the fourth anniversary of Russia's full-scale invasion of Ukraine. The EU failed to approve the new Russia sanctions package and the financial aid, leaving the measures in limbo as discussions continue.

RU

Russia launches massive attacks on Ukraine's energy system, causing widespread blackouts

Russia carried out a large-scale attack on Ukraine's energy infrastructure, damaging power plants and heating facilities. Ukrainian President Volodymyr Zelenskyy said all of Ukraine's power plants were damaged, and officials in Kyiv warned residents could have only 4 to 6 hours of electricity daily in February. Zelenskyy accused Russia of exploiting a pause in attacks on energy targets and said the strikes would force Ukraine to adjust its approach to peace negotiations. The attacks left thousands of people without power during freezing temperatures, with reports of deaths from hypothermia. Zelenskyy stated Russia was largely observing an 'energy ceasefire' ahead of planned talks, but later said Russia was 'not ready' for such a truce. Dutch Prime Minister Mark Rutte visited a damaged energy site in Kyiv as repair crews worked to restore power.

CZ/HU/PL+1

Hungary and Slovakia threaten to cut aid to Ukraine over halted Russian oil pipeline

Hungary and Slovakia are threatening to withhold European Union aid and cut electricity supplies to Ukraine. The dispute centers on the Druzhba oil pipeline, which normally carries Russian oil through Ukraine to these countries. Ukraine has halted the flow, citing damage from military strikes. Hungarian Prime Minister Viktor Orbán has threatened to veto a 90-billion-euro EU loan package for Ukraine. Slovak Prime Minister Robert Fico has warned he will stop emergency electricity supplies to Ukraine. Both leaders accuse Ukraine of deliberately blocking the pipeline and demand it be reopened. Ukraine's President Volodymyr Zelenskyy has invited Fico for talks. The EU has called for an emergency meeting and a joint investigation into the pipeline's status. Slovakia says Ukraine has further delayed giving a date for when oil deliveries will resume.

UA

Former Ukrainian energy minister arrested and charged in major corruption case

A former Ukrainian energy minister was detained while trying to leave the country and has been charged with money laundering. The case involves an alleged $100 million graft scheme and is described as the largest corruption case under President Volodymyr Zelensky's administration. Ukraine has made progress in international corruption rankings despite this and other high-profile scandals. Separately, Zelensky announced Ukraine plans to begin exporting its own weapons.

RU

Ukrainian drones damage Russian oil facilities and pipeline, disrupting supplies

Ukrainian drones struck a key oil terminal and a facility for the Druzhba oil pipeline in Russia. Ukraine also blocked oil supplies from Russia to Hungary, which Hungary's foreign minister confirmed. Russia accused Ukraine of 'energy blackmail' over the blocked supplies. The attacks and supply block occurred as oil prices rose and talks between Russia and Ukraine broke down.

CZ/HU/PL+1

Hungary's leader accuses Ukraine of planning energy disruptions, deploys soldiers

Hungarian Prime Minister Viktor Orbán has accused Ukraine of plotting to disrupt energy facilities and has ordered soldiers deployed to protect them. Orbán also urged Ukrainian President Volodymyr Zelensky to reopen the Druzhba pipeline in an open letter, disputing Zelensky's previous claims about the pipeline.

RU

Russia takes new steps to isolate Ukraine and faces budget pressure

Russia is taking new actions to economically isolate Ukraine. The country's rail chief said Russia aims to 'cut' entire regions from Ukraine's train network, and it plans to ban ships that visit Ukrainian ports from using its own Black Sea terminals. Separately, reports indicate Russia is facing financial pressure. The KSE Institute says Russia is meeting its budget targets through spending cuts as oil prices slide, and a German intelligence analysis suggests Moscow's actual military spending is higher than what has been publicly stated.