EU envoys back 90 billion euro Ukraine loan as Hungary, Slovakia say Druzhba oil transit resumed
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Editor's note: The story has been updated with the latest details.
EU envoys on April 22 backed the 90-billion-euro ($106 billion) loan for Ukraine, the spokesperson for the Cyprus Presidency of the EU Council said, signaling an end to a months-long standoff between Kyiv and Budapest.
The news comes after Hungary and Slovakia said Ukraine had resumed oil transit via the Druzhba pipeline, with the first deliveries expected by April 23. The suspension of transit was the reason why Budapest had been blocking the loan since February.
The pipeline, used to funnel Russian crude to Slovakia and Hungary, went offline in late January after being damaged in a Russian attack. Budapest and Bratislava accused Kyiv of deliberately withholding transit.
"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 (Committee of Permanent Representatives)," the spokesperson of the Cyprus Presidency of the EU Council said on April 22.
EU ambassadors have now launched a written procedure for a final approval by the Council of the EU. The procedure is expected to be completed by the afternoon of April 23.
Budapest has previously said it will give final approval only once oil starts flowing to Hungary through the Druzhba pipeline.
Mol, Hungary's largest energy company, said on April 22 it was informed by the operator of the Ukrainian section of the pipeline, Ukrtransnafta, that "the receipt of crude oil from Belarus via the Druzhba pipeline system began in Ukraine at noon today."
This was also confirmed by Slovak Economy Minister Denisa Sakova, who said that deliveries to Slovakia should resume by the morning of April 23.
President Volodymyr Zelensky confirmed on April 21 that the necessary repair work has been completed and the pipeline is ready to resume operations.
Ukraine has not yet publicly commented on the resumption of operations. A representative of Naftogaz, the parent company of Ukrtransnafta, declined to comment.
The loan is a crucial lifeline for cash-strapped Ukraine amid Russia's invasion, intended to help cover the country's financial needs in 2026–2027, with two-thirds allocated to defense and the remainder to budgetary support.
The disbursement is scheduled to begin between late May and early June.
Hungary and Slovakia, both landlocked, were the only EU members still receiving Russian crude via the pipeline's southern branch before the disruption. The route accounts for roughly 86–92% of Hungary's oil imports and nearly all of Slovakia's supply.
The Hungarian energy company Mol has already submitted requests for first transit volumes, to be equally distributed between Hungary and Slovakia, Reuters reported, citing an undisclosed source.
Outgoing Hungarian Prime Minister Viktor Orban, who was seen as the EU's most Kremlin-friendly leader, centered his reelection campaign on accusations that Ukraine engaged in "energy blackmail."
In a letter to European Council President Antonio Costa on April 20, Orban said that Hungary is ready to lift the veto on the loan "without delay" once the transit resumes.
Slovak Foreign Minister Juraj Blanar said that Bratislava is also ready to approve the 20th package of sanctions against Russia, which has been blocked due to the dispute, but "only once Russian oil arrives in Slovakia via the Druzhba pipeline."
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