Ukraine Moves to Resume Druzhba Pipeline Oil Flows

Ukraine expects oil transit through the Druzhba pipeline to resume on Tuesday, potentially clearing the way for the EU to approve a €90 billion ($106 billion) loan package for Kyiv, Bloomberg reports.

Ukrainian officials said on Monday that technical conditions are in place to restart oil flows, easing concerns among several European countries affected by the recent transit halt.

EU ambassadors are poised to approve the loan on Wednesday if the Druzhba pipeline, a major route for transporting Russian crude oil, resumes in time.

The move follows a decision by the Cypriot presidency of the Council of the EU to place the Ukraine loan on the agenda of a meeting of the bloc’s 27 ambassadors, indicating optimism that the deal can be approved.

The €90 billion ($106 billion) Ukraine Support Loan was designed to provide predictable financing for the 2026 and 2027 fiscal years, covering roughly two-thirds of the country’s estimated financial needs.

Budapest had initially agreed to the loan in December but blocked it in February amid a dispute over the pipeline. Outgoing Hungarian Prime Minister Viktor Orbán accused Ukraine of delaying repairs in retaliation for Hungary’s friendly ties with Russia, a claim that Kyiv has rejected.

Orbán said on Sunday he would drop his opposition once transit through the Druzhba pipeline – which was damaged in a Russian strike in January – is restored.

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President Volodymyr Zelensky said last week that the pipeline would be operational by the end of the month, though diplomats say there is a strong chance flows could resume before Wednesday’s meeting, POLITICO reported.

Zelensky had previously pledged to repair the pipeline shortly after opposition leader Péter Magyar defeated Orbán in Hungary’s recent election.

If approved this week, the loan would allow Ukraine to begin receiving funds in May, after the European Commission completes technical checks expected to take several weeks.