EU on Wednesday secured agreement to the €90 billion loan to Ukraine. At the same time, the 20th sanctions package against Russia was approved. The EU is thus rid of a major headache, but we still do not know how the loan is to be financed.

Immediately after the election in Hungary, oil once again began to flow through the Druzhba pipeline that runs via Ukraine. Ukraine has blamed the Russians, which Hungary has not accepted.

The EU is assuming substantial commitments; a loan of around €1,100 billion is not exactly an everyday matter. Few believe Ukraine will ever repay it. The EU presumably hopes that it will be Russia that pays. There have been efforts to confiscate the Russians’ frozen assets in Euroclear in Belgium, something the Russians have warned against.

In parallel, a process has been initiated within the Council of Europe in which Russia will both be brought before a court and be required to pay for the reconstruction of Ukraine. We are then speaking of an amount that will likely far exceed €90 billion.

That point is still a long way off.