Druzhba pipeline restart clears path for EU to approve €90bn loan to Kyiv
Druzhba pipeline restarts to Hungary and Slovakia, prompting EU diplomats to clear a €90bn loan for Kyiv and revive stalled sanctions against Russia.
The resumption of flows through the Druzhba pipeline has removed the final obstacle to European Union approval of a 90-billion-euro loan for Ukraine, EU diplomats said on Wednesday. The pipeline restart, confirmed by Hungarian oil group MOL and Slovak officials, prompted Budapest to lift its long-standing veto and allowed the bloc’s 27 members to move toward formal sign-off. The decision marks a significant financial boost for Kyiv as Brussels prepares to release funds agreed to support Ukraine’s liquidity through 2026 and 2027.
Druzhba pipeline resumes deliveries to Hungary and Slovakia
MOL announced that crude oil was flowing to Hungary and Slovakia and that the first full shipments were expected “by tomorrow at the latest.” Slovakia’s Economy Minister Denisa Sakova said deliveries were anticipated in the early hours of Thursday, reflecting coordinated confirmations from both capitals. Ukrainian authorities have said the Druzhba pipeline, damaged by Russian attacks in late January, has been repaired sufficiently to resume transit after months of disruption.
Hungary lifts veto after confirmed oil flows
Outgoing Hungarian Prime Minister Viktor Orbán, whose government had previously blocked the EU loan, indicated his objections would be withdrawn following confirmation of pipeline repairs and resumed deliveries. The change in stance came after Orbán’s party lost the April 12 parliamentary vote, and the incoming political leadership has signalled it will not oppose the funds for Kyiv. With Budapest’s hold removed, diplomats in Brussels moved quickly to give preliminary approval for the loan package so that member states can formalise the measure.
EU diplomats clear way for €90bn loan for Kyiv
EU representatives meeting in Brussels gave preliminary clearance to the 90-billion-euro loan on Wednesday, paving the way for a full endorsement by the union’s 27 member states. The loan, agreed last year to shore up Ukraine’s finances, had been stalled amid the pipeline dispute and broader disagreements over energy and repairs. Resolution of the impasse should allow the European Commission to begin disbursing funds to Kyiv, providing crucial fiscal support more than four years into the war with Russia.
Sanctions package revived as pipeline issue resolves
Alongside the loan, EU capitals are preparing to approve a new round of economic penalties on Russia that had been delayed due to the same bilateral tensions. The package, described by officials as the 20th tranche of measures since 2022, targets Russian energy, banking and trade sectors and had been held up by Hungary and Slovakia amid the pipeline standoff. With pipeline flows restored, Brussels expects to push the sanctions decision through, renewing pressure on Moscow at a time of shifting international support.
Political shifts in Budapest and Bratislava influenced timing
Hungary’s electoral outcome on April 12 and the impending change in government leadership played a central role in unblocking the loan approval process. The incoming Hungarian leader has publicly indicated a willingness to lift the veto on EU funds for Kyiv, allowing long-delayed deliberations to proceed. Slovakia’s government, which had also raised objections, confirmed it would accept the resumed deliveries, though its prime minister warned privately that renewed cuts in supply could reopen tensions.
EU officials have stressed that the loan and sanctions decisions are distinct but interconnected matters, with energy security and diplomatic trust now front and centre in member-state negotiations. The EU’s ability to act hinges on unanimous agreement among its 27 members for both financial assistance and coordinated punitive measures against Russia.
Logistical capacity and regional energy implications
Operators note that the Druzhba system can handle between 1.2 million and 1.4 million barrels of oil per day, with the potential to increase toward two million barrels under certain conditions. Restored flows to Hungary and Slovakia will ease immediate supply concerns in central Europe and reduce reliance on alternative and often costlier routes. Companies involved in refining and distribution in both countries have been preparing to receive shipments, and early deliveries are expected to test the repaired segments of the pipeline.
Market analysts caution that while the restart is significant, the system remains vulnerable to renewed attacks or political pressure that could interrupt deliveries again. Energy security experts also point to the broader strategic implications for Europe’s diversification away from Russian supplies and the need for longer-term resilience measures.
The EU now faces the task of converting preliminary diplomatic agreement into formal approvals in the coming days, while Kyiv awaits the disbursement that would provide a substantive fiscal buffer during ongoing hostilities. Observers say the episode underscores the interdependence of energy routes and political decisions in shaping both regional security and financial support for Ukraine.