EU agrees to unblock €90bn loan for Ukraine after Hungary lifts veto The European Union has formally approved a €90 billion loan for Ukraine following the restart of the Druzhba oil pipeline, which allowed Hungary to lift its longstanding veto on the financial aid package. The development marks a significant step in sustaining Ukraine’s economic resilience amid the ongoing war with Russia. The Druzhba pipeline, a critical conduit for Russian crude oil to Central Europe, resumed flows through its Ukrainian section on Wednesday after a months-long halt caused by damage from a Russian drone strike in western Ukraine. Hungarian oil company MOL confirmed that Ukraine had notified it of the resumption of Russian crude deliveries via the pipeline, with the first shipments expected to reach Hungary and Slovakia by the following day. The pipeline’s restoration directly addressed Hungary’s condition for lifting its blockade on the EU loan, which had been tied to the resumption of oil transit through Ukrainian territory. Hungary, heavily dependent on Russian energy supplies, had previously argued that Ukraine was delaying repairs to the pipeline—a claim Kyiv consistently denied. Shortly after the pipeline restart, EU ambassadors in Brussels approved the loan package. The 27 member states are expected to formally sign off on the agreement by Thursday afternoon, completing the final procedural step. The loan, initially agreed upon by the EU last year, is designed to support Ukraine’s liquidity and budgetary needs through 2026, and 2027. Ukrainian President Volodymyr Zelenskyy welcomed the development, describing the unblocking of the funds as “the right signal under the current circumstances.” He emphasized that sustained international support for Ukraine, coupled with continued pressure on Russia, remains essential to creating incentives for a peaceful resolution to the conflict. The resolution of the Druzhba pipeline issue not only restores vital energy flows to Hungary and Slovakia but also removes a key political obstacle to further EU financial assistance for Kyiv. As the war continues into its fourth year, the coordinated resumption of energy transit and financial support underscores the intricate link between European energy security and Ukraine’s ability to withstand prolonged aggression.
32