Hungary’s energy lifeline from Russia restarted on Thursday, clearing the way for the European Union to unlock a $106 billion loan package for Ukraine after months of political deadlock.
The resumption of oil flows through the Druzhba pipeline to Hungary and Slovakia came just as EU finance ministers formally approved the two-year financial lifeline Kyiv has said it needs to sustain its war effort and stabilize its collapsing economy. The loan, equivalent to 90 billion euros, will be disbursed as soon as administrative steps are completed, according to Cypriot Finance Minister Makis Keravnos, whose country holds the EU’s rotating presidency.
The breakthrough ended a standoff that had seen Hungary and Slovakia block not only the loan but also a new round of sanctions against Russia, despite broad EU consensus on both measures. Ukrainian officials had accused Moscow of damaging the pipeline in January via drone strikes, a claim Hungary’s Prime Minister Viktor Orbán rejected, alleging instead that Kyiv delayed repairs to pressure Budapest, and Bratislava.
Slovak Prime Minister Robert Fico, although welcoming the return of oil supplies, cast doubt on the official narrative, saying he did not believe the pipeline was damaged at all and suggesting it had become a pawn in the wider geopolitical struggle. His comments underscored the lingering skepticism in Bratislava and Budapest toward Kyiv’s wartime accounts, even as both countries resumed taking Russian crude.
The Washington Post noted that Orbán’s recent electoral defeat removed the loan’s most vocal opponent within the EU, though his party remains in power and his energy policy has not changed. EU officials said the loan approval had been pending since early winter, delayed solely by Hungarian and Slovak resistance tied to the pipeline dispute.
This is not the first time energy politics have overridden solidarity within the bloc. In 2022, similar divisions emerged over Russian gas payments when Hungary refused to join EU-wide sanctions, insisting on maintaining its supply contracts with Gazprom.
The EU also approved a new package of sanctions against Russia on Thursday, measures that had been drafted in January to coincide with the second anniversary of the full-scale invasion but were held up by the same Budapest-Bratislava bloc. Sanctions and the loan were treated as linked conditions for unlocking Kyiv’s financial support.
For Ukraine, the loan represents more than budgetary relief; it is a signal that external financing will continue despite wartime strain on donor economies. Officials said the funds will cover state salaries, pension payments, and critical imports, helping to prevent a deeper economic freefall as Russian forces press forward in the east.
Hungary and Slovakia remain outliers in EU energy policy, continuing to rely on Russian oil while most member states have phased out such imports. Their insistence on maintaining the flow has created a persistent friction point in EU solidarity, complicating efforts to present a united front against Moscow.
EU leaders framed the resolution as a return to normalcy, with European Council President Antonio Costa posting “Promised, delivered, implemented” on social media ahead of a summit in Cyprus. The message sought to portray the loan’s approval as the fulfillment of a prior commitment, though the delay had raised questions about the reliability of EU pledges under political pressure.
Why did Hungary and Slovakia block the loan and sanctions?
They opposed both measures until Russian oil flows resumed through the Druzhba pipeline, citing national energy security and disputing Ukraine’s claim that Russian drone attacks damaged the infrastructure.
Is this loan new funding or a repackaging of earlier promises?
EU officials presented it as the final approval of a package agreed upon in December, though disbursement had been stalled by the Hungarian and Slovak veto linked to the pipeline dispute.
