EU Moves Toward Unlocking 90 Billion Ukraine Loan As Russian Oil Flows To Hungary, Slovakia (Worthy News In-Depth)

by Stefan J. Bos, Worthy News Europe Bureau Chief

BRUSSELS/KYIV/BUDAPEST (Worthy News) – The European Union moved toward unlocking a 90 billion euro (about $106 billion) loan to Kyiv on Wednesday after officials said Russian oil was again flowing to Hungary and Slovakia following months of disruptions linked to the war in Ukraine.

Hungarian oil and natural gas giant MOL confirmed that Ukraine had resumed deliveries through the Druzhba pipeline (“Friendship”) shortly after noon local time.

The pipeline had been damaged in January amid fighting between Ukraine and Russia, halting deliveries for months.

MOL said the first shipments were expected to arrive in Hungary and Slovakia by Thursday.

The restart enabled EU nations to move toward approving the major financial package for Kyiv.

EU LOAN NEARS APPROVAL

The loan received preliminary backing from all 27 member states on Wednesday after months of delays linked to Hungary’s veto, diplomats said.

The Cypriot EU presidency indicated that final approval was expected Thursday.

The loan aims to support Ukraine’s urgent economic and military needs as it continues to defend itself against Russia’s full-scale invasion.

The decision followed Kyiv’s announcement that the Druzhba pipeline had resumed deliveries of Russian oil to Hungary and Slovakia.

Both countries had previously suggested they could block the loan if supplies were not restored.

PIPELINE DISPUTE CONTINUES

Outgoing Hungarian Prime Minister Viktor Orbán and the Slovak government had accused Ukraine of delaying repairs for political reasons, an allegation Kyiv denied.

The prospects for the loan improved after Orbán’s defeat in Hungary’s April elections.

Péter Magyar, leader of the winning Tisza party, indicated he would not oppose the package once in office.

Magyar had earlier urged Ukrainian President Volodymyr Zelenskyy to reopen the pipeline, saying: “This is not a game.”

He added: “It’s like an invitation to dinner—I accept it, and then I start blackmailing him, that if it is not lecho, then I will do this and that.”

DRUZHBA REMAINS KEY ROUTE

The Druzhba pipeline remains one of the key routes for Russian oil exports to parts of Central and Eastern Europe.

Its disruption highlighted the region’s continued reliance on Russian energy despite EU efforts to diversify supplies.

The restoration of flows appears to have helped unlock broader political and financial agreements within the bloc.

European Union countries also agreed on a 20th package of sanctions against Russia, which had been delayed amid the dispute with Hungary.

The measures aim to weaken Russia’s economy and limit its ability to finance the war.

EU BACKS UKRAINE

The EU had initially hoped to adopt the sanctions package earlier this year to mark the anniversary of the invasion.

Zelenskyy welcomed the development, calling it “the right signal under the current circumstances.”

He said incentives for Russia to end the war would arise “only when both support for Ukraine and pressure on Russia are sufficient.”

The Ukrainian leader added that Kyiv was meeting its obligations toward the European Union, including on sensitive issues such as the operation of the Druzhba pipeline.

He stressed that it was important the support package “becomes operational swiftly.”

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