EU Approves €90 Billion Ukraine Loan as Oil Pipeline Resumes, Ending Political Deadlock
The European Union has given preliminary approval to a €90 billion financial support package for Ukraine after the resumption of Russian oil flows through a key pipeline helped resolve months of political deadlock.
EU ambassadors meeting in Brussels signaled their backing for the long-delayed funding package, along with a new round of sanctions against Russia. The decision is expected to be formally approved on Thursday.
Pipeline Resumes After Months of Disruption
Ukraine confirmed it has restarted oil transit through the Druzhba pipeline to Hungary and Slovakia after repairs were completed following earlier damage caused by Russian strikes.
The resumption of flows came just hours before EU discussions on the loan, which had been delayed since February after Hungary blocked approval.
Hungarian officials had insisted that oil deliveries be restored before lifting their veto on the funding package.
Political Breakthrough in Brussels
The breakthrough also comes after Hungary’s recent political shift, which saw Prime Minister Viktor Orbán lose his long-standing position. His successor, Péter Magyar, has signaled a desire to improve relations with the European Union.
EU foreign policy chief Kaja Kallas said the agreement sends a strong message of support for Ukraine, stating that Russia “cannot outlast Ukraine” in the conflict.
Critical Funding for Ukraine
Ukrainian officials have described the €90 billion package as essential for the country’s survival.
Deputy Prime Minister Taras Kachka called the funding “a matter of life and death,” with two-thirds of the money expected to support defense spending and the remainder allocated to broader economic assistance.
President Volodymyr Zelensky welcomed the development, saying swift implementation of EU support is crucial under current conditions.
Energy and War Politics Intertwined
The dispute over the pipeline and funding highlighted the deep connection between Europe’s energy security and the ongoing war.
At one point, Ukraine’s pipeline damage led to accusations from Hungary that Kyiv had imposed an “oil blockade,” while Ukraine pointed to Russian attacks as the cause of disruption.
Meanwhile, Ukraine has also targeted Russian energy infrastructure, further intensifying regional tensions.
Outlook
While the funding approval marks a significant diplomatic breakthrough, it may still take weeks before the money reaches Kyiv.
Officials say the agreement signals continued European commitment to supporting Ukraine amid ongoing war and energy instability.
