EU to Approve 90 Billion Euro Loan to Ukraine on Wednesday as Hungary Drops Veto

(KYIV) – European Union ambassadors are scheduled to approve a 90 billion euro loan package for Ukraine on Wednesday, conditional on the restoration of crude oil flows to Hungary via the Druzhba pipeline. The agreement, reported by Politico and citing four unnamed EU diplomatic sources, hinges on Budapest lifting its veto once Russian oil transit resumes following damage sustained during repeated Russian military strikes.

The Cypriot presidency of the EU Council has formally placed the loan approval on the agenda for the meeting of the 27 member state ambassadors on Wednesday. If oil supplies are reestablished by that time, Hungary is anticipated to withdraw its objection, clearing the path for the financial package. The outgoing Hungarian Prime Minister Viktor Orbán has indicated that the veto will be removed as soon as the transit infrastructure is operational once more.

European Council President António Costa has publicly welcomed Ukraine’s commitment to restore the Druzhba pipeline within six weeks. Speaking at a press conference following the EU summit, Costa stated, “We welcome Ukraine’s efforts and commitment to restore the Druzhba pipeline, destroyed by Russia, and we welcome President Zelenskyy’s public commitment to restore this Druzhba pipeline within the next six weeks.” He further noted that the European Commission has extended an offer of technical and financial support for the restoration effort, an offer which Ukraine has accepted.

Costa expressed frustration regarding the political leverage exerted over the loan, noting that the condition imposed by Hungary is one “that neither the European Union nor the member states can ensure, since only Russia is ready to decide whether it will try to destroy the Druzhba pipeline again or not.” He highlighted that Russian forces have attacked the pipeline on 23 separate occasions. “For the 23rd time, Ukraine will restore it again, this Druzhba pipeline,” Costa said, adding that Hungary’s conduct “is absolutely unacceptable, and such behaviour cannot be accepted by leaders.”

According to Politico, an EU technical team has already arrived in Ukraine and is awaiting authorisation from the Security Service to inspect the pipeline and assess both the extent of the damage and the projected repair timeline. Hungary and Slovakia, which remain the only EU member states still importing Russian crude, have been cut off from supplies via the Druzhba network since late January following a Russian strike. Both nations have previously accused Kyiv of deliberately delaying repairs for political reasons.

Ukrainian President Volodymyr Zelenskyy has affirmed that the Druzhba pipeline will be functional by the end of April. Should the loan be ratified this week, Kyiv can expect the disbursement of the 90 billion euro sum, equivalent to approximately 97 billion US dollars, during the month of May. Following the lifting of Hungary’s hold, the European Commission will be positioned to release the capital upon the conclusion of standard technical procedures, a process expected to span several weeks.