The European Union preliminary approved a €90 billion loan to Ukraine after Hungary signalled it would lift its long-standing veto as oil started flowing through the Druzhba pipeline again.
Today, the Cypriot presidency of the EU confirmed that the long blocked €90 billion loan for Ukraine was green-lighted by the EU ambassadors.
This decision coincided with the approval of the 20th package of sanctions against Russia, which were also dependent on the reopening of the pipeline because of Slovakian demands.
“They will now go through a written procedure for their final adoption by the Council,” a Cypriot presidency spokesperson said.
Tomorrow afternoon, the written procedure is expected pass its final hurdle.
Today, news broke that the Ukrainian section of the Druzhba pipeline was repaired and Russian oil would soon reach Hungary and Slovakia again.
“MOL expects the first crude oil shipments following the restart of the Ukrainian section of the pipeline system to arrive in Hungary and Slovakia by tomorrow at the latest,” Hungarian oil group MOL said in a statement.
The breakthrough comes in the coattails of Viktor Orbán’s defeat as prime minister in Hungary’s parliamentary election on April 12, ending the not so Ukraine-friendly Fidesz rule and paving the way for a pro-European government led by Péter Magyar of the Tisza party.
Following Magyar’s landslide victory, EU officials reported “new momentum” in Budapest.
The Prime Minister-elect indicated Hungary was ready to end its blockade once oil flows resumed, while outgoing prime minister Orbán confirmed on April 20 that Ukraine had signalled readiness to restart deliveries via Brussels-mediated contacts.
Ukrainian officials now aim to complete technical tests and reopen the pipeline as soon as possible, clearing the final obstacle to the loan’s approval.
Yesterday, the EU foreign policy chief Kaja Kallas said a positive decision on the €90 billion package was expected within 24 hours.
Russian oil deliveries to Hungary and Slovakia via the Druzhba pipeline (which crosses Ukrainian territory) were halted in January after damage from a Russian drone strike.
Budapest accused Kyiv of blackmail by delaying repairs and made resumption of supplies a condition for approving the EU’s €90 billion loan package, intended to cover Ukraine’s military and economic needs for the next two years.
Orbán repeatedly stated “no oil, no money”, blocking both the loan and related sanctions packages.
The European Commission offered technical support and funding to repair the pipeline but progress remained stalled.
The shift also raises hopes that Brussels can accelerate the release of Hungary’s own frozen EU funds, which had been withheld over alleged rule-of-law concerns. Magyar has pledged to rebuild ties with the bloc and prioritise economic reset.
Ukrainian President Volodymyr Zelensky could not hold back a chuckle during a press conference after a journalist asked about bombing a Russian Druzhba pipeline that supplies oil to Hungary and Slovakia. https://t.co/NCHypJJqox
— Brussels Signal (@brusselssignal) August 25, 2025
