EU approves €90bn loan for Ukraine after Druzhba pipeline restarts On Thursday, April 23, 2026, the European Union formally approved a €90 billion loan package for Ukraine following the resumption of oil flows through the Druzhba pipeline, ending a months-long stalemate that had blocked the funding. The decision came after Ukrainian authorities confirmed repairs to the pipeline section damaged by a Russian strike in January, allowing crude oil shipments to resume to Hungary and Slovakia. The Druzhba pipeline, a critical transit route for Russian oil to Central Europe, had been inactive since late January after Ukraine reported damage from a Russian attack. The halt triggered diplomatic tensions with Budapest and Bratislava, which rely heavily on the pipeline for their energy supplies. Hungarian Prime Minister Viktor Orbán had previously used his veto power to delay the EU loan, insisting that oil flows must resume before financial assistance could be released. Ukrainian President Volodymyr Zelenskyy announced on April 21 that repair operate on the damaged section had been completed and that the pipeline was ready to resume operations. He emphasized that although the risk of future attacks remains, Ukrainian engineers had restored the infrastructure to full operational capacity. An industry source cited by Reuters indicated that oil transit was expected to restart on April 22, with initial shipments split evenly between Hungary and Slovakia. The resumption of flows directly addressed Orbán’s condition for lifting his veto. Shortly after the pipeline’s reactivation, EU ambassadors convened in Brussels and gave preliminary approval to the €90 billion loan, along with a 20th package of sanctions on Russian officials and entities. The loan, initially agreed upon in December 2025, is now expected to be finalized and disbursed in the coming days. EU foreign policy chief Kaja Kallas stated that the funding represents both a vital lifeline for Ukraine’s defense and a clear signal that Russia cannot outlast Ukrainian resilience. Ukrainian Deputy Prime Minister Taras Kachka had previously described the loan as “a matter of life and death” for Kyiv, noting that approximately two-thirds of the funds will be allocated to strengthening Ukraine’s military capabilities, with the remainder supporting broader economic stability and humanitarian needs. The development marks a significant turning point in EU-Ukraine relations, particularly following Orbán’s electoral defeat on April 20, which ended his 16-year tenure as Hungary’s prime minister. His successor, Péter Magyar, has signaled a willingness to reset Budapest’s relationship with Brussels, removing a major obstacle to deeper European integration and coordinated support for Ukraine. As oil flows resume and financial assistance moves forward, the EU reaffirms its commitment to sustaining Ukraine’s capacity to resist ongoing aggression while reinforcing unity among member states on energy security and sanctions policy. The alignment of infrastructure recovery and financial support underscores the interconnected nature of energy, finance, and security in the broader response to the conflict.
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