EU Unlocks Vital €90bn Loan as Ukraine Restores Russian Oil Flow

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Kyiv : A high-stakes energy deadlock that threatened Ukraine’s financial stability has broken, as Kyiv resumed pumping Russian crude oil to Hungary and Slovakia. The restart paved the way for European Union ambassadors meeting in Cyprus to grant preliminary approval for a vital €90bn (£78bn) loan package, along with a 20th round of sanctions against Moscow. The breakthrough follows months of tension centered on the Druzhba pipeline, which had been offline since late January due to damage from Russian strikes. Outgoing Hungarian Prime Minister Viktor Orbán had used the disruption as leverage, vetoing the massive financial aid package until the oil began flowing again.
The timing of the resolution is closely linked to a seismic shift in Hungarian politics. Following a decisive election defeat, Orbán’s 16-year tenure is drawing to a close, and his successor, Péter Magyar, has signaled a "reset" in Budapest’s fractured relationship with Brussels. Despite acting as a caretaker leader until next month, Orbán confirmed that restored deliveries meant Hungary would no longer stand in the way of the loan. Ukraine confirmed that engineers completed repairs to the damaged hub at Brody on Tuesday, with oil transit officially resuming on Wednesday afternoon.
For Ukraine, the unblocking of these funds is a critical victory. Deputy Prime Minister Taras Kachka described the loan as a "matter of life and death," noting that two-thirds of the €90bn will be immediately directed toward defense needs to counter ongoing Russian aggression. EU foreign policy chief Kaja Kallas hailed the progress as a signal that Russia cannot outlast Ukraine. While the funding still requires a final sign-off from EU leaders at an informal summit this Thursday, the resumption of oil flow appears to have removed the final political hurdle in a saga that has lasted nearly four months.