Ukraine gets $105 bn EU loan Orban had vetoed as it lets Russian oil flow to Europe

European Union ambassadors on Wednesday approved a long-delayed €90 billion ($105–106 billion) loan package for Ukraine along with fresh sanctions on Russia, after Hungary lifted its veto following the resumption of Russian oil transit to Europe.

The breakthrough comes after a prolonged standoff led by Hungary's Viktor Orbán, who had blocked the financial aid while demanding the restoration of oil supplies through the Druzhba pipeline. The pipeline, damaged earlier this year, has now been repaired, allowing crude shipments to resume to Hungary and Slovakia.

According to a Reuters report, citing the EU’s Cypriot presidency, member states are expected to formally sign off on the loan and sanctions package by Thursday.

The financial assistance, originally agreed upon last year, is aimed at supporting Ukraine’s economy through 2026 and 2027.

Hungary’s position softened after its oil company, MOL Group, confirmed it had been informed that pipeline operator Ukraine was ready to restart transit. The company said shipments were expected to reach Hungary and Slovakia by Thursday, both of which remain heavily dependent on Russian energy.

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The dispute had also delayed a new round of EU sanctions against Russia, which the bloc had intended to adopt to mark the anniversary of the Russian invasion of Ukraine on February 24.

Ukraine’s position was further strengthened after Orbán’s electoral defeat earlier this month. The incoming leadership under Peter Magyar has indicated it will no longer block EU assistance to Kyiv.

Ukraine restarts Russian oil pipeline to Hungary, Slovakia

Ukraine has resumed pumping Russian oil to Hungary and Slovakia after completing repairs to the Druzhba pipeline damaged in a Russian attack, according to AFP, citing Ukrainian energy industry source.

"At 12:35 (0935 GMT), oil transit was launched and pumping began," AFP quoted the source as saying.

According to Reuters, MOL Group said shipments were expected to reach Hungary and Slovakia by Thursday, both of which remain heavily dependent on Russian energy.

Zelenskyy says Druzhba oil pipeline repaired

Ukrainian President Volodymyr Zelenskyy on Tuesday confirmed that repairs to the Druzhba pipeline had been completed following damage caused by a Russian strike.

"Ukraine has completed repair work on the section of the Druzhba oil pipeline that was damaged by a Russian ‌strike. The pipeline can resume operation," Zelenskyy said on X.

The suspension of oil flows for nearly two months had triggered tensions with Hungary and Slovakia, both of which accused Kyiv of delaying repairs. With transit now restored, Ukraine also restarted pumping oil on Wednesday.

With inputs from agencies