The European Union is moving to finalize a €90 billion loan for Ukraine after months of political gridlock, as oil supplies through the Druzhba pipeline to Hungary and Slovakia have finally resumed.
EU ambassadors in Brussels have granted preliminary approval for the funding, alongside a 20th package of sanctions against Russia, with final sign-off expected Thursday. The breakthrough follows the repair of the pipeline, which Ukraine had claimed was damaged by Russian attacks earlier this year.
The political landscape shifted significantly after the election defeat of Hungarian Prime Minister Viktor Orbán, who had previously vetoed the loan and accused Kyiv of imposing an 'oil blockade' on his nation. Orbán, who maintained a contentious relationship with Brussels and Kyiv, had conditioned his support for the loan on the restoration of oil flows.
With his 16-year tenure coming to an end, incoming leader Péter Magyar has signaled a pivot toward mending ties with the EU. Ukrainian officials, who described the funding as a 'matter of life and death,' intend to use two-thirds of the loan to bolster defense efforts.
While the pipeline is now pressurized and oil is expected to reach Hungary and Slovakia by Thursday, the actual disbursement of the massive loan package could still take weeks to reach Kyiv.
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