Unlocking Europe's Energy Future: The EU's €90bn Loan to Ukraine and the Revival of the Pipeline
Fresh flows of Russian oil are moving again toward Hungary and Slovakia after Ukraine restarted operations along a key pipeline. The months-long disruption, tied to a €90 billion financial package for Kyiv, has now been resolved, easing pressure across Central Europe’s energy networks.
The agreement, critical for Ukraine’s economic and military stability, had been delayed due to political disputes within the European Union. With repairs completed and funding approved, both oil and financial support are now back on track.
EU Approves Financial Aid Amid Political Shift
EU envoys met in Brussels and approved the long-delayed aid package, while also advancing a new round of sanctions against Russia - marking one of the most significant steps in years of economic pressure.
Although the funding had initially been agreed upon in December, Hungary’s leadership blocked its release in February, citing concerns over disrupted oil supplies.
That position has now changed following political developments in Budapest. After sixteen years in power, Viktor Orbán has been replaced by Péter Magyar, who is expected to strengthen relations with EU institutions.
"Ukraine really needs this loan and it's also a sign that Russia cannot outlast Ukraine," said EU foreign policy chief Kaja Kallas.
Ukraine’s deputy leader Taras Kachka described the funding as essential, noting that approximately 67 percent will support military efforts, while the remainder will stabilize the broader economy.
Pipeline Repairs Enable Oil Flow
Oil transit through the Druzhba pipeline resumed after Ukraine completed repairs to infrastructure damaged by earlier Russian strikes. The pipeline had been offline since late January.
According to Ukrainian officials, oil began flowing again at 12:35 local time (09:35 GMT), though exact volumes were not immediately confirmed.
Slovakia’s economy minister Denisa Sakova confirmed that deliveries are expected to reach the country shortly, while Hungary’s energy company Mol anticipates full resumption by Thursday.
The restart of oil flows was a key condition set by Hungary before lifting its opposition to the EU loan.
Energy Disruptions and Political Tensions
The disruption began after a Russian strike damaged critical infrastructure near Brody in western Ukraine. Repairs were delayed due to ongoing attacks, prolonging the shutdown.
At the same time, Ukraine carried out strikes on Russian energy facilities, including a site in the Samara region connected to the Druzhba network. These developments added further complexity to the situation.
Hungary had previously accused Ukraine of enforcing an "oil blockade," escalating tensions within the EU. The dispute also became a central issue during Hungary’s recent election campaign.
Broader Implications for Europe
The resolution of both the pipeline disruption and the financial dispute marks a significant moment for European unity. EU leaders emphasized that continued cooperation is essential for supporting Ukraine and maintaining regional stability.
Ukrainian President Volodymyr Zelensky confirmed discussions with European Commission President Ursula von der Leyen and European Council President António Costa to ensure the loan moves forward without further delay.
"There can be no grounds for blocking it any more," Zelensky said. "The EU asked Ukraine to repair the Druzhba oil pipeline, which had been destroyed by Russia. We have repaired it."
Despite the approval, Ukrainian media report that funds may take several weeks to reach Kyiv.
Conclusion
The reopening of the Druzhba pipeline and approval of the €90 billion aid package signal a turning point in recent tensions between Ukraine and EU member states.
With energy supplies stabilizing and financial support moving forward, the focus now shifts to implementation. The coming weeks will determine how effectively these decisions translate into long-term stability for both Ukraine and the wider European region.