EU set to approve €90bn Ukraine loan after oil pipeline breakthrough

The European Union is expected to approve a €90-billion ($106bn) loan for Ukraine after a months-long dispute linked to disrupted Russian oil supplies through a key pipeline to Europe. EU diplomats meeting in Brussels gave preliminary approval on Wednesday, as Russian oil deliveries resumed through the Druzhba pipeline to Hungary and Slovakia. The two countries had previously accused Ukraine of delaying repairs to the war-damaged pipeline. Hungarian oil company MOL said Kyiv confirmed flows had restarted, with shipments expected to arrive within a day. Slovakia also said deliveries were expected to resume early Thursday. The breakthrough removed Hungary’s veto on the EU funding package, allowing the bloc’s 27 member states to move toward final approval by Thursday. The loan, agreed last year, is intended to support Ukraine’s financial stability through 2026 and 2027 amid its ongoing war with Russia. Hungarian Prime Minister Viktor Orban and Slovakia had previously blocked the package, but Hungary’s position shifted following recent political changes and the resumption of oil flows. Ukrainian President Volodymyr Zelenskyy had earlier indicated that pipeline repairs following Russian strikes in January helped pave the way for renewed deliveries. The Druzhba pipeline, one of Europe’s largest oil supply routes, transports Russian crude to several EU countries. Slovak officials said the first shipments were expected early Thursday, while Hungary confirmed it would receive oil shortly. Alongside the loan, EU countries are also preparing a new package of sanctions against Russia, covering energy, banking and trade sectors. It would be the 20th round of sanctions since the start of the war in 2022. The EU is also expected to begin disbursing the loan soon, providing financial support to Kyiv as it continues to face pressure in its war with Moscow, amid shifting US policy positions on the conflict.

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