EU Poised to Approve 90-Billion-Euro Loan for Kyiv after Druzhba Pipeline Resumes
EU set to approve a 90-billion-euro loan for Kyiv after Druzhba pipeline oil flows resume, prompting Hungary to lift its veto and unblocking crucial funding.
The European Union moved close to formally approving a 90-billion-euro loan for Kyiv on April 22, 2026, after Russian oil began flowing again through the Druzhba pipeline to Hungary and Slovakia. The restart of deliveries removed the last major obstacle to the funding package that was blocked by Budapest and Bratislava for months. EU diplomats in Brussels gave preliminary sign-off, putting the bloc’s 27 member states on track to endorse the loan within days.
Brussels diplomats give preliminary approval
The EU’s diplomatic corps granted preliminary approval for the loan during a meeting in Brussels, clearing the way for a final endorsement by the full membership. The decision follows intense negotiations that had stalled when two member states linked the loan’s approval to the resumption of pipeline shipments. Officials said the loan is intended to help Ukraine manage urgent financing needs through 2026 and 2027.
The measure will be financed through borrowing on EU capital markets and is designed to shore up Kyiv’s liquidity as it continues to confront a drawn-out conflict. With the deadlock broken, European institutions are expected to move quickly to implement the legal framework and begin disbursements.
Druzhba pipeline returns to service
Ukrainian authorities and international energy firms reported that repairs to the Druzhba pipeline — which carries Russian crude across Ukrainian territory into Central Europe — had been completed and oil flows resumed. The pipeline, damaged in late January during hostilities, had been out of service for weeks, prompting energy shortages and political rows in the region.
Operators and state energy officials in Hungary and Slovakia confirmed that the first shipments were due imminently, with deliveries described as starting "by tomorrow at the latest" in statements from regional oil companies. The pipeline’s capacity is significant, typically carrying between 1.2 million and 1.4 million barrels per day, with the potential to rise toward two million in peak conditions.
Hungary lifts long-standing veto
Budapest’s decision to withdraw its opposition followed the announcement that Druzhba supplies were restarting, ending a standoff that had prevented the EU from authorizing the loan. Hungary’s outgoing leader had repeatedly tied approval to the pipeline’s status, arguing for the restoration of energy flows before supporting the funding package.
The political landscape in Hungary shifted after the April 12 parliamentary election, which yielded a victory for the opposition. The incoming government’s leader indicated he would not continue to block Kyiv’s access to EU funding, paving the way for a change in Budapest’s stance.
Slovakia and MOL confirm imminent shipments
Slovak officials and regional oil company MOL issued statements saying they expected oil to reach refineries in Slovakia and Hungary within hours. Slovakia’s Economy Minister flagged early Thursday for anticipated deliveries, while MOL said Kyiv had confirmed that oil was flowing through the repaired sections of the pipeline.
Slovak Prime Minister Robert Fico, who has at times resisted broader EU measures on Ukraine, cautioned that supply continuity would remain a concern and said he would not be surprised if deliveries were interrupted again. Energy executives and national authorities, however, stressed that repair works had been completed and monitoring would continue.
Financial impact for Kyiv and the EU
Unlocking the 90-billion-euro loan would deliver a sizeable financial lifeline to Ukraine at a critical juncture in the conflict and economic recovery. Brussels designed the loan to cover Kyiv’s pressing funding needs across 2026 and 2027, helping stabilize public finances while the country sustains defense and reconstruction efforts.
EU officials said rapid approval would allow the bloc to begin disbursing funds as soon as administrative steps are complete, providing predictable liquidity to Ukraine’s budget. The package also signals to markets and allies that the EU is prepared to use pooled borrowing to support a partner under sustained pressure.
New sanctions on Russia remain in prospect
Alongside the loan, EU capitals moved to advance a fresh package of measures targeting Russia’s energy, banking and trade sectors that had been delayed amid the pipeline dispute. Diplomats described the planned package as another step in a sequence of economic penalties intended to increase pressure on Moscow.
While the resumption of oil shipments removed one procedural hurdle, several EU governments emphasized that sanctions decisions would proceed independently and were not contingent on pipeline operations. Officials stressed that the bloc remains committed to aligning economic measures with broader strategic objectives.
The coming days are expected to see formal sign-off by EU member states and the start of administrative preparations for loan disbursement. Energy and diplomatic officials said monitoring will continue closely to ensure steady pipeline operations and to guard against any renewed disruptions to supplies.
