EU Advances €90 Billion Ukraine Loan as Druzhba Pipeline Resumes Oil Deliveries

EU ambassadors have backed the approval process for a 90-billion-euro loan for Ukraine, alongside the bloc’s 20th sanctions package against Russia, after months of delays linked to objections from Hungary and Slovakia over disrupted oil transit through the Druzhba pipeline.

The decision was confirmed on April 22 by the spokesperson for the Cyprus Presidency of the Council of the EU, who said both measures had been approved at the level of Coreper, the Committee of Permanent Representatives. A written procedure has now been launched for final approval by all 27 member states, with completion expected by the afternoon of April 23.

“Today, both the 90 billion euro Ukraine loan, and the 20th sanctions package have been included in the agenda of EU ambassadors, and have been approved at the level of Coreper,” the spokesperson said.

The loan is considered a major financial lifeline for Ukraine as it continues to manage the costs of Russia’s invasion. The package is designed to cover Kyiv’s financial needs for 2026 and 2027, with around two-thirds of the funds intended for defense spending and the rest for broader budgetary support. The first disbursements are expected between late May and early June.

Hungary had blocked the measure since February, while both Budapest and Bratislava also delayed support for the next sanctions package, insisting that oil transit through the Druzhba pipeline must first be restored. The southern branch of the pipeline is the last route through which Russian crude continues to reach both countries.

The pipeline was shut down in late January after damage caused by a Russian strike. Hungary and Slovakia accused Ukraine of failing to restore the flow, while Kyiv said repair work was necessary before operations could resume.

President Volodymyr Zelensky confirmed on April 21 that repairs had been completed and the system was ready to function again. Although Ukraine has not formally announced the restart of transit, Hungary’s largest energy company Mol said it had been informed by Ukrtransnafta that the reception of crude oil from Belarus through the Druzhba system had resumed at noon on April 22.

“The receipt of crude oil from Belarus via the Druzhba pipeline system began in Ukraine at noon today,” Mol said, citing information from the Ukrainian pipeline operator.

This was also confirmed by Slovak Economy Minister Denisa Sakova, who said the first deliveries should reach Slovakia by the morning of April 23. Reuters also reported that Mol had already submitted requests for the first transit volumes, which are expected to be divided equally between Hungary and Slovakia.

For both countries, the pipeline remains strategically critical. Before the disruption, it accounted for between 86 and 92 percent of Hungary’s oil imports and supplied nearly all of Slovakia’s crude oil needs.

Outgoing Hungarian Prime Minister Viktor Orbán had tied Budapest’s final approval of the loan to the restoration of the transit route, accusing Ukraine during his campaign of engaging in what he called “energy blackmail.” In a letter to European Council President Antonio Costa dated April 20, he said Hungary would lift its veto “without delay” once deliveries resumed.

Slovak Foreign Minister Juraj Blanár took a similar position, saying Bratislava would support the sanctions package only after Russian oil physically arrived in Slovakia again through Druzhba.

Once the written procedure is completed and all member states sign off, both the Ukraine loan and the sanctions package will require formal unanimous adoption by the Council of the EU. EU foreign policy chief Kaja Kallas had earlier said she expected the approval to be finalized within 24 hours.