EU unblocks €90bn loan to Ukraine after pipeline repair and political change in Hungary

The European Union has initiated the final procedures to release a €90 billion loan to Ukraine following the repair of a key oil pipeline and a change in Hungary's political leadership.

This development comes after months of deadlock caused by Hungary's veto linked to the suspension of Russian oil transit through Ukraine's Druzhba pipeline.

Hungary had previously blocked the loan agreement, citing concerns over the halted transit of Russian oil through the Druzhba pipeline, which was damaged by Russian strikes.

The outgoing Hungarian Prime Minister, Viktor Orbán, accused Ukraine of sabotaging the pipeline transit, demanding the resumption of oil flows before approving the loan.

Following the completion of repairs to the Druzhba pipeline, Ukraine restarted the pumping of Russian oil to Hungary and Slovakia.

Both countries confirmed that transit had resumed, with Hungarian energy company MOL expecting crude oil shipments to arrive imminently.

Slovakia's Economy Minister Denisa Sakova also anticipated the first deliveries early the following day.

This loan is critical for Ukraine's financial stability through 2026 and 2027, with two-thirds of the funds earmarked for defense needs and the remainder for broader financial assistance.

Ukrainian Deputy Prime Minister Taras Kachka described the funding as "a matter of life and death" for Kyiv.

The timing of the loan approval is also linked to Hungary's recent political shift.

Viktor Orbán's defeat in the recent election ended his 16-year tenure as prime minister.

His successor, Péter Magyar, has prioritized improving relations with the European Union, facilitating the resolution of the impasse.

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