Hungary and Slovakia Lift Objections as Ukraine Restarts Oil Flows on Repaired Druzhba Pipeline, Unblocking Funds

The funds were signed off when Hungary and Slovakia dropped objections after Ukraine restarted oil flows following repairs to the damaged Druzhba pipeline.

The European Union has formally approved a €90 billion ($105.79 billion) loan package for Ukraine after Hungary and Slovakia lifted their objections following the resumption of Russian oil flows through Ukraine’s section of the Druzhba pipeline.

The Druzhba pipeline, which transports Russian crude to Central Europe, had been halted for months after a Russian drone strike damaged the Ukrainian section of the infrastructure. The disruption had previously led Hungary and Slovakia — both reliant on the pipeline for their energy supplies — to block the EU loan over concerns that Ukraine had failed to repair the damage.

Ukrainian authorities completed repairs to the damaged segment, allowing Russian oil to resume transit through the pipeline on Wednesday, according to industry sources and officials cited by Reuters and CNN. Hungarian oil group MOL confirmed that Kyiv had notified it of the resumption of flows, with the first shipments expected to reach Hungary and Slovakia by the following day.

The resumption of oil transit directly addressed the core concern of Hungary and Slovakia, enabling them to withdraw their veto. Shortly after the restart was confirmed, EU ambassadors meeting in Brussels approved the loan package, with the 27 member states expected to formally sign off by Thursday afternoon.

The loan, described as urgently needed by Kyiv, will support Ukraine’s government finances and reconstruction efforts amid the ongoing war with Russia. The approval marks a significant step in EU financial support for Ukraine, particularly as President Volodymyr Zelenskyy continues to advocate for full EU membership.

EU foreign policy chief Kaja Kallas has been a prominent advocate for strengthening Ukraine’s integration with European institutions, though no direct statement from her was included in the immediate reports surrounding the loan approval.

The Druzhba pipeline has remained a focal point of geopolitical tension since the start of the full-scale invasion, serving as both a critical energy artery and a leverage point in EU-Ukraine-Russia relations. Its reactivation underscores the intertwining of energy security and financial assistance in the bloc’s response to the war.