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Ukraine resumes oil transit, unlocking EU loan

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Ukraine has resumed the transit of Russian oil through a key pipeline supplying Hungary and Slovakia, ending a months-long standoff that had delayed crucial European Union financial support for Kyiv.

Shortly after the restart, EU ambassadors meeting in Brussels gave preliminary approval to a €90bn loan package for Ukraine, along with a new round of sanctions targeting Russia. Final approval is expected imminently.

The funding, initially agreed in December, had been blocked by Viktor Orbán in February. His veto came after oil flows were disrupted due to damage caused by Russian strikes on Ukrainian infrastructure. Budapest had insisted that supplies be restored before any financial support could proceed.

Ukrainian authorities confirmed that repairs had been completed and pumping resumed, with oil expected to reach Slovakia and Hungary within days. The pipeline in question is part of the Druzhba pipeline, a major route for Russian crude exports to Europe.

The political context has also shifted. Orbán’s recent electoral defeat paved the way for a change in Hungary’s stance, with incoming leadership under Péter Magyar signaling improved relations with the EU.

European officials welcomed the breakthrough. EU foreign policy chief Kaja Kallas described the loan as essential for Ukraine, emphasizing its importance for both defence and economic stability.

Ukrainian Deputy Prime Minister Taras Kachka has previously described the funding as critical, noting that a significant portion will support military needs, while the remainder will help stabilize the broader economy.

Despite the progress, logistical uncertainties remain regarding the exact volume of oil being transported. However, energy companies in the region expect deliveries to normalize quickly.

The resolution marks a key moment in EU-Ukraine relations, removing a major political and operational obstacle. It also underscores the continued strategic importance of energy infrastructure in shaping geopolitical decisions during the ongoing conflict.

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