The European Union has given preliminary approval to a €90 billion loan for Ukraine, ending months of political deadlock after the resumption of Russian oil flows through a key pipeline.
EU ambassadors in Brussels approved the funding package on Wednesday, alongside a new round of sanctions against Russia. The decision came hours after Ukraine confirmed it had restarted pumping oil through the Druzhba pipeline into Hungary and Slovakia—a condition set by Hungary's outgoing Prime Minister Viktor Orbán to release the funds.
"Ukraine really needs this loan and it's also a sign that Russia cannot outlast Ukraine," said EU foreign policy chief Kaja Kallas ahead of the meeting.
Ukrainian Deputy Prime Minister Taras Kachka described the EU funding as "a matter of life and death" for Kyiv. Two-thirds of the loan will support Ukraine's defense efforts, with the remainder allocated to broader financial assistance.
The pipeline dispute began in late January when Ukraine halted supplies after Russian attacks damaged infrastructure at the Brody oil hub. Orbán vetoed the EU loan in February, demanding the resumption of oil flows before approving the financial package.
"There can be no grounds for blocking it any more," Ukrainian President Volodymyr Zelensky said late Tuesday. "The EU asked Ukraine to repair the Druzhba oil pipeline, which had been destroyed by Russia. We have repaired it. We hope the EU will also deliver on the agreed commitments."
Slovak Economy Minister Denisa Sakova confirmed that pipeline pressurization began Wednesday morning, with crude oil expected to reach Slovakia by Thursday. Hungarian energy firm Mol similarly anticipates receiving supplies by Thursday.
The political landscape shifted dramatically with Orbán's election defeat last Sunday after 16 years in power. His successor, Péter Magyar, has pledged to reset Hungary's strained relations with Brussels.
Orbán, who will serve as caretaker leader until early next month, stated over the weekend that once oil deliveries resumed, "we will no longer stand in the way of approving the loan." During his campaign, he had accused Ukraine of imposing an "oil blockade" on Hungary and Slovakia.
While the EU ambassadors' approval marks a significant breakthrough, Ukrainian media reports suggest it could still take weeks for the funding to reach Kyiv. The loan package will receive final approval at an informal EU summit in Cyprus on Thursday.