EU Approves $106 Billion Loan for Ukraine; Oil Pipeline Resumes Flow

deliveries via the Druzhba pipeline, which crosses Ukraine, resumed on Thursday to Hungary and Slovakia. The pipeline had been damaged in January, with Ukrainian officials attributing the damage to Russian drone attacks. Both recipient countries confirmed the resumption, with the Slovak Prime Minister calling it good news.

Hungary and Slovakia, still dependent on Russian energy unlike most EU members, had been in a feud with Ukraine over the halted supplies. A Hungarian energy group reported receiving crude oil at pumping stations earlier that day. The dispute had delayed the loan package and sanctions, as both countries opposed the measures amid the oil row.

“We will work to make sure the funds are delivered as soon as possible. This will strengthen, of course first of all our army, Ukrainian forces, and allow us to boost production.”

the loan, the EU approved a new set of sanctions against Russia on the fifth year of its war in Ukraine. These measures, prepared early this year, target over 40 ships in Russia's shadow fleet for illicit oil transport, several banks, and impose a ban on Europeans using Russian cryptocurrency.

Asset freezes were applied to around 60 additional entities, adding to over 2,600 already sanctioned, including officials and organizations. The sanctions aim to cut Russia's oil revenue, a key funding source for its military without causing domestic economic collapse.

The measures had been delayed since February due to opposition from Hungary and Slovakia over the pipeline issue. The EU had originally intended to use frozen Russian assets as collateral for the loan. But that option was blocked by Belgium.

The deadlock stemmed from a December agreement where the Czech Republic, Hungary, and Slovakia agreed not to block the loan if they did not participate. However, opposition arose over the pipeline dispute, highlighting EU decision-making issues requiring unanimity.

Officials have called for more majority voting to avoid national interests holding up bloc-wide actions. Ukraine and its EU backers oppose Russian oil imports that fund the war, but Hungary and Slovakia's energy needs created exceptions. The Slovak Prime Minister expressed skepticism about the pipeline damage, alleging it was used in geopolitical battles.

The resolution allows focus on advancing Ukraine's EU membership aspirations.

“Let’s hope a serious relation between Ukraine and the European Union has been established." — Slovak Prime Minister Robert Fico, Thursday (Los Angeles Times). The loan reflects the EU's assessment that peace in Ukraine remains distant, committing to long-term support. The package was unblocked after oil resumed. This unity among EU members underscores ongoing efforts to counter Russian aggression.”