EU Approves €90bn Ukraine Loan as Oil Pipeline Restart Breaks Deadlock

The European Union has moved to approve a €90bn (£78bn) financial package for Ukraine after the resumption of Russian oil flows through a key pipeline ended months of political deadlock.

Ukrainian officials confirmed that oil transit had restarted through the Druzhba pipeline into Hungary and Slovakia, clearing a major obstacle that had delayed the funding.

Shortly after the restart, EU ambassadors meeting in Brussels gave preliminary approval to the loan, alongside a new package of sanctions targeting Russia. Final approval is expected to follow shortly.

The funding had originally been agreed in December but was blocked in February by Hungarian Prime Minister Viktor Orbán, who objected after oil supplies were disrupted due to damage from Russian strikes inside Ukraine.

Orbán had insisted that deliveries resume before Hungary would lift its veto. His recent election defeat has also helped ease tensions, with incoming leader Péter Magyar signalling a desire to improve relations with Brussels.

EU foreign policy chief Kaja Kallas said the loan was crucial for Ukraine and demonstrated that Russia could not outlast Kyiv economically.

Ukrainian Deputy Prime Minister Taras Kachka described the funding as “a matter of life and death,” noting that around two-thirds would be directed toward defence, with the remainder supporting broader economic needs.

Energy operators said pressure was being restored to the pipeline, with oil expected to begin reaching Slovakia and Hungary within hours. Hungarian energy company MOL Group said it anticipated receiving supplies by Thursday.

The disruption had significantly strained energy supplies in the region, with Hungary and Slovakia heavily reliant on pipeline imports. Orbán had previously accused Ukraine of imposing an “oil blockade,” a claim Kyiv denied, pointing instead to infrastructure damage caused by ongoing conflict.