Ukrainian President Volodymyr Zelenskyy announced on Tuesday that repairs to the Druzhba oil pipeline have been completed and the line can resume transporting Russian oil to Hungary and Slovakia.
The pipeline, which carries Russian crude through Ukrainian territory to Central Europe, was damaged in late January by Russian attacks, according to Kyiv.
Hungary and Slovakia, both reliant on Russian oil via this route, had accused Ukraine of delaying repairs and used their influence to block a €90 billion European Union loan package approved by the bloc’s leaders in December.
Zelenskyy tied the pipeline’s restoration directly to the release of the frozen funds, stating that Ukraine had fulfilled the conditions set by the EU in coordination with Budapest and Bratislava.
He noted on social media that he had discussed the matter with European Council President António Costa, saying Ukraine had done what the bloc asked.
EU foreign policy chief Kaja Kallas said later on Tuesday she expected a “positive decision” on the loan within 24 hours, with ambassadors from the 27 member states set to give final approval at a meeting on Wednesday.
The Kremlin responded that Russia is ready to resume oil flows through the pipeline if Ukraine ends what Moscow describes as “blackmail,” referring to Kyiv’s demand for the loan’s release.
Despite the war, the EU has maintained an exception for land-based Russian oil shipments, even as it banned seaborne imports following the 2022 invasion.
Ukraine said it needs the funds to address budget shortfalls but has secured interim financing from other partners while the loan remained stalled.
In a related development, Ukrainian officials said drones struck an oil-pumping and dispatch facility in Russia’s Samara region overnight, part of the Druzhba pipeline’s supply chain near the village of Prosvet.
Why did Hungary block the EU loan to Ukraine?
Hungary blocked the loan because it depends on Russian oil transported via the Druzhba pipeline and accused Ukraine of delaying repairs to the line after it was damaged in January.
What happens next for the EU loan?
EU ambassadors are expected to approve the loan at a meeting on Wednesday, following Kaja Kallas’s expectation of a positive decision within 24 hours of Zelenskyy’s announcement.