The European Union has given preliminary approval to release $106 billion in crucial financial support for Ukraine after a months-long standoff with Hungary over disrupted Russian oil supplies showed signs of easing.
Diplomats said on Wednesday that Budapest had been given 24 hours to formally sign off on the package as it waits for Russian crude to resume arriving through the Druzhba pipeline, which passes through Ukraine.
The dispute had frozen urgently needed EU funds for Kiev, pitting outgoing Hungarian Prime Minister Viktor Orban against Ukrainian President Volodymyr Zelenskyy and exposing deep divisions inside the bloc over Russia’s war.
Officials said Ukraine had restarted operations on the damaged section of the pipeline after repairs were completed following a Russian strike.
Hungarian energy giant MOL said it expected the first crude shipments to reach Hungary and Slovakia “by tomorrow at the latest,” while Slovak Economy Minister Denisa Sakova said deliveries were expected in the early hours of Thursday.
Pipeline repairs break political deadlock
Hungary and Slovakia — two of the EU’s most Kremlin-friendly governments — had accused Kiev of delaying repairs and used the disruption to block both the loan package and new sanctions against Moscow.
Orban, who recently suffered a crushing election defeat after 16 years in power, had insisted he would not approve the funding until pipeline operations were restored.
The breakthrough now clears the path for Brussels to begin disbursing the loan in the coming months, providing Ukraine with vital budget support more than four years into Russia’s full-scale invasion.
Zelensky has repeatedly criticised EU members that continue buying Russian oil and gas, arguing the purchases help finance Moscow’s war machine.
Fresh Russia sanctions back on the table
The easing of the pipeline row could also help unblock the EU’s 20th sanctions package against Russia, which has also been stalled by Hungary and Slovakia.
The new measures would target Russia’s energy, banking and trade sectors, as Brussels tries to increase pressure on the Kremlin while Washington under President Donald Trump has moved to ease restrictions on Russian oil during the Iran conflict.
Zelenskyy on Tuesday urged European leaders to tighten sanctions again, warning against allowing Moscow financial breathing room.
Still, scepticism remains.
Slovak Prime Minister Robert Fico said Wednesday he “would not be surprised if the €90 billion loan were unblocked and then oil supplies were cut off again,” signalling continued distrust between Kiev and some of its European partners.
For now, however, the resumption of oil flows has offered Brussels its clearest opening in months to restore momentum behind support for Ukraine.
