Hungary has dropped its opposition to a roughly €90 billion European Union loan for Ukraine after Kyiv resumed oil transit via the Druzhba pipeline, with first deliveries expected by Thursday.
The dispute also delayed the implementation of the EU’s 20th sanctions package against Russia, which the bloc had initially planned to adopt on February 24, 2022—the fourth anniversary of Russia’s invasion of Ukraine.
A spokesperson for the Cyprus presidency of the EU Council confirmed Wednesday that both the €90 billion Ukraine loan and the 20th sanctions package have been approved at the level of the Committee of Permanent Representatives.
The EU had agreed last year on the loan to keep Ukraine financially afloat through 2027. However, Hungary’s Prime Minister Viktor Orban refused to sign off on the loan until repairs were completed on the Druzhba pipeline, which carries Russian oil through Ukraine to Hungary and Slovakia. Orban accused Ukraine of sabotage and referred to it as “energy blackmail.”
Orban had previously agreed in principle to the loan but later reversed his stance, citing frustration over the pace of repairs. In a letter to European Council President Antonio Costa on Monday, Orban stated that Hungary is ready to lift its veto on the loan “without delay” once transit resumes.
Slovak Foreign Minister Juraj Blanar confirmed that Bratislava is also ready to approve the sanctions package but emphasized it would be implemented only after Russian oil arrives in Slovakia via the Druzhba pipeline.
MOL, Hungary’s largest energy company, reported Wednesday that Ukrtransnafta, the Ukrainian operator of the Druzhba pipeline, was set to resume crude oil transit to Hungary and Slovakia by Thursday at the latest. Slovak Economy Minister Denisa Sakova confirmed first deliveries should arrive by Thursday morning.
Hungary and Slovakia were the only EU members still receiving Russian crude through the pipeline’s southern branch before the disruption. The route accounts for roughly 86% to 92% of Hungary’s oil imports and nearly all of Slovakia’s supply.
Ukrainian President Volodymyr Zelenskyy claimed Tuesday that repairs on the pipeline had been completed, but evidence shows the Druzhba pipeline remains damaged, contradicting his earlier assertion that Ukraine was taking “all possible efforts” to restore operations.
European funding has become crucial for Ukraine after the U.S. administration withdrew financial support last year. The loan is expected to cover about two-thirds of Ukraine’s financing needs this year and next.
