The European Union has unlocked a 90-billion-euro ($105 billion) loan for Ukraine following a deal to restore oil flows through the Druzhba pipeline to Hungary and Slovakia.
- The loan was released after Hungary lifted a veto tied to the repair of the Druzhba pipeline.
- Ukraine has since targeted Russian pumping stations to permanently disrupt the pipeline’s operations.
- Recent strikes have contributed to a 40 percent reduction in Russia’s total oil export capacity.
The agreement is viewed by some Ukrainian and European officials as a bittersweet victory. While the funds are critical for Ukraine’s survival over the next two years, the deal ensures continued Russian oil revenue.
Last year, Hungary and Slovakia received 9.25 million tonnes of crude via the pipeline, valued at more than $4 billion. Ukrainian parliament member Inna Sovsun described the arrangement as “immoral,” noting that the money paid to the aggressor translates into weapons used against Ukraine.
Regional Dependence on the Druzhba Pipeline
While other EU members including Germany, Poland, Czechia, and Austria have weaned themselves off the pipeline, landlocked Hungary and Slovakia maintain it as their sole source of crude.
Energy experts state that shutting down refineries in these two nations would devastate their local economies. Such a move would eliminate the production of essential petroleum products, including asphalt and naphtha for fertilizers.
Though Hungary could potentially use the Adria pipeline via Croatia, the two nations remain locked in a legal battle over its control.
Geopolitical Struggles and Leadership Shifts
Oil flows ceased on January 27 after Ukraine reported that a Russian air raid hit a pumping station. Kyiv initially stated the site was too dangerous for repair crews, a claim met with suspicion by Hungarian Prime Minister Viktor Orban and Slovakian Prime Minister Robert Fico.
Orban subsequently reversed his approval of the EU loan, leading to a standoff with Kyiv. The deadlock ended after a Hungarian general election on April 12 unseated Orban, after which Ukraine repaired the pipeline.
In Slovakia, Prime Minister Robert Fico has previously described the pipeline as a tool in a geopolitical struggle. Fico has faced criticism from Ukrainian President Volodymyr Zelenskyy for his close ties to Moscow, though the two leaders later patched their relationship in September.
Ukrainian Sabotage Operations
Ukraine appears to be moving to shut down the pipeline permanently by targeting infrastructure deep inside Russian territory. The Security Service of Ukraine (SBU) has shifted its focus to pumping stations feeding the system.
On February 23, the SBU set fire to the Kaleykino oil pumping station in the Republic of Tatarstan. This was followed by an April 21 attack on the Transneft-Privolga pumping station in Samara, which damaged five 20,000-tonne crude tanks.
These operations have had a significant economic impact on Moscow. Estimates indicate these disruptions helped deprive Russia of 40 percent of its total export capacity and forced a production cut of half a million barrels a day compared to late 2025.
The future of Ukraine’s EU integration remains uncertain. Incoming Hungarian Prime Minister Peter Magyar has indicated he will hold another referendum on Ukrainian accession, while other EU powers like France and Germany may soon face a “clarification moment” regarding their support.
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