EU Breakthrough: Hungary Lifts Veto on €90bn Ukraine Loan Following Restoration of ‘Druzhba’ Oil Flow

Hungary has lifted its veto on a €90bn loan for Ukraine and new sanctions on Russia after oil transit resumed. Read about the EU's 20th sanctions package.

By: AXL Media

Published: Apr 23, 2026, 6:18 AM EDT

Source: Information for this report was sourced from The Guardian

A Diplomatic Resolution to the Energy Standoff

The paralysis of the European Union’s financial support for Ukraine ended Wednesday afternoon after the Druzhba pipeline’s Ukrainian operator confirmed that crude oil had begun flowing again from Belarus toward Central Europe. The pipeline, which carries between 1.2 million and 1.4 million barrels per day, had been at the center of a bitter dispute since March, when Viktor Orbán vetoed the EU’s aid package. Orbán had accused Kyiv of using recent Russian drone damage to the pipeline as a pretext to deliberately starve Hungary and Slovakia of energy. However, following the successful repair and resumption of transit, Budapest signaled its willingness to allow the EU’s collective financial and punitive measures to proceed.

Structuring the €90 Billion Lifeline

The unblocked aid package is critical for Ukraine’s economic survival through 2026 and 2027, as economists warned the nation could run out of liquidity as early as June. The agreement provides two interest-free loans of €45 billion for each year, with the following allocation:

Military Spending: €28 billion per year to sustain defensive operations.

General Budget: €17 billion per year to maintain essential state services.