EU Greenlights €90 Billion Loan for Ukraine as Oil Flow Resumes

Thu Apr 23 2026 10:59:09 GMT+0000 (Coordinated Universal Time)

A long-anticipated €90 billion loan for Ukraine has received preliminary approval from EU ambassadors following the resumption of oil pumping through a key pipeline into Hungary and Slovakia.

The European Union has approved a vital €90 billion loan for Ukraine after the country resumed oil pumping through the Druzhba pipeline. The approval follows months of delays marked by Hungary's veto, influenced by prior tensions over oil supply disruptions. Following the recent election defeat of Hungary's Viktor Orbán, whose government imposed the veto, relations with the EU appear to be normalizing, paving the way for this financial support crucial for Ukraine's defense needs amidst ongoing conflict.

Ukraine's government has confirmed the resumption of oil pumping through the Druzhba pipeline into Hungary and Slovakia, marking the end of a prolonged deadlock regarding a significant €90 billion ($78 billion) loan from the European Union. This loan is vital for supporting Ukraine amidst ongoing conflict with Russia.

The approval for the loan was expected to be formalized during a meeting of EU ambassadors in Brussels. This follows a package of sanctions against Russia as well, demonstrating a concerted effort to address the challenges posed by the ongoing war in Ukraine.

Initially agreed upon in December, the loan faced delays when Hungary's Prime Minister Viktor Orbán vetoed the release of these funds, citing disruptions in oil supplies due to damaged infrastructure resulting from Russian attacks. Orbán made it clear that the flow of oil through the Druzhba pipeline must be restored before Hungary could support the loan.

Reports confirmed that the repairs were completed, and oil began flowing again just hours after EU ambassadors discussed the loan. The anticipated approval comes after Orbán's recent election defeat, which has shifted Hungary's political dynamics, allowing for a potential thawing of relations with the EU.

As Ukrainian Deputy Prime Minister Taras Kachka stated, the EU's funding could be a 'matter of life and death' for Kyiv, with a focus on defense needs, while two-thirds of the funds will be allocated towards bolstering military initiatives.

Slovak Economy Minister Denisa Sakova noted that oil deliveries had restarted, and Ukrainian sources confirmed oil was being pumped through the Druzhba pipeline again, bringing relief to the energy-strapped economies of Hungary and Slovakia.

Orbán's previous accusations of an 'oil blockade' imposed by Ukraine were criticized as part of his failed election strategy, as he sought to position himself against Ukraine and EU policies. However, following this recent political shift, both countries seem poised to cooperate more effectively.

Ukrainian President Volodymyr Zelensky emphasized the importance of these funds, indicating that prompt operationalization of the support package is crucial for responding to current circumstances. Despite the positive developments, it might take several weeks before financial assistance reaches Kyiv.

In related news, Russia announced it would halt Kazakh oil supplies through another segment of the Druzhba pipeline to Germany as of May 1, further complicating Europe’s energy landscape amid geopolitical tensions.