Ukraine Restores Druzhba Pipeline, Paving Way for Potential Approval of €90 Billion EU Loan

Bullish (0.4)Impact: Medium

Published on April 21, 2026 (4 hours ago) · By Vibe Trader

Ukraine has completed repairs on the Druzhba oil pipeline, which had been damaged by a Russian strike, and is preparing to resume oil flows, according to President Volodymyr Zelenskyy. Zelenskyy emphasized that while the pipeline is ready to operate, there is no guarantee that Russia will not target the infrastructure again in the future. The repair of the Druzhba pipeline was a contentious issue that delayed the approval of a major €90 billion ($106 billion) European Union loan intended to support Ukraine’s military and economic needs over the next two years. The funds had been blocked by Hungary and Slovakia, who accused Kyiv of deliberately obstructing Russian oil deliveries, while Zelenskyy linked the pipeline repair to the unblocking of the European support package, which had already been approved by the European Council [1].

Russian oil supplies to Hungary and Slovakia had been halted for two months following what Ukrainian officials described as Russian drone attacks on the pipeline, which crosses Ukrainian territory. Continuous strikes have posed risks to technicians working on repairs. The situation was further complicated by political tensions, with former Hungarian Prime Minister Viktor Orbán threatening to cut gas supplies to Ukraine and both Hungary and Slovakia accusing Ukraine of obstructing Russian deliveries. Zelenskyy previously expressed reluctance to allow Russian oil to continue transiting through Ukraine [1].

Top EU officials are now cautiously optimistic that the €90 billion loan scheme might be approved as soon as Wednesday, potentially ending months of political deadlock. EU foreign policy chief Kaja Kallas stated, “We expect an agreement in 24 hours, so I don’t want to jinx it,” following a meeting of EU foreign ministers. European Council President Antonio Costa thanked Zelenskyy for repairing the pipeline and restoring its operation. EU envoys are scheduled to meet Wednesday in hopes of resolving the standoff. The EU had initially planned to use Russian assets frozen in Europe as collateral for the loan, but this option was blocked by Belgium, where most of the assets are held [1].

CONCLUSION

Ukraine’s completion of Druzhba pipeline repairs has removed a key obstacle to the approval of a €90 billion EU loan, with EU officials expressing optimism about a resolution within 24 hours. The development signals potential financial relief for Ukraine, though risks to the pipeline’s security remain.

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