The Druzhba pipeline that carries Russian oil through Ukraine to Hungary and Slovakia has been repaired and can resume operations, Ukrainian President Volodymyr Zelenskyy has announced, ending a months-long standoff between Kyiv and Budapest.
The Soviet-era pipeline has been out of order since a Russian drone attack on western Ukraine in late January.
"Ukraine has completed repair work on the section of the Druzhba oil pipeline that was damaged by a Russian strike," Zelenskyy said in a social media post published on X.
"The pipeline can resume operation," he added.
The announcement paves the way for Hungary to lift its veto on the €90 billion loan for Ukraine, which was endorsed by EU leaders in December but suddenly blocked by outgoing Prime Minister Viktor Orbán in February in reaction to the interruption of oil flows. The last-minute veto infuriated other heads of state, who saw it as a breach of the principle of sincere cooperation.
In his message, Zelenskyy made it clear he expects the deadlock to be broken.
"We connect this with the unblocking of the European support package for Ukraine, which had already been approved by the European Council," he said.
Orbán, whose 16-year term is about to end after a bruising defeat at the polls, said on Sunday that he would drop his reservations as soon as the oil transit resumes.
If Orbán makes good on his word, the final element of the loan could be approved as early as Wednesday when EU ambassadors meet in Brussels. Hungary, Slovakia and the Czech Republic have secured an opt-out from the borrowing.
Disbursement could begin shortly after that on a gradual basis. The initial allocation for 2026 is €16.7 billion for financial support and €28.3 billion for military support. Payments are subject to the Ukrainian government's approval of reforms.
Relief in Brussels
The news has been met with relief in Brussels, where the row over Druzhba put the institutions in an awkward position. On the one hand, they condemned Orbán's veto as an "unacceptable" attempt at "blackmail". On the other hand, they publicly pressured Zelenskyy to accelerate repairs.
Brussels even offered to pay for the fix with EU funds and send experts to the damaged site, a key request from Orbán. The inspection never took place.
"Thank you, President Zelenskyy, for delivering, as agreed: repairing the Druzhba pipeline and restoring its operation," said European Council President António Costa.
High Representative Kaja Kallas expects the veto to be lifted "in 24 hours".
"I don't want to jinx it. I hope everything goes well, because we have seen some turns in this file," Kallas said in Luxembourg.
"But this is the agreement that we had in December. Resuming (flows) is a promise that Ukraine made, so hopefully, all the obstacles are removed."
Besides the loan, the bitter dispute over the pipeline has also paralysed a new package of sanctions against Russia, which is simultaneously vetoed by Hungary and Slovakia.
The package includes a full ban on maritime services for Russian oil tankers, intended to drive up material costs and dampen energy profits.
"We must continue systematic sanctions pressure on Russia over this war and work on further diversifying energy supplies to Europe," Zelenskyy said.
"Europe must be independent from those who seek to destroy or weaken it."
However, even if the sanctions are approved, the full ban will not enter into force immediately because Greece and Malta want to make it conditional on a G7-level agreement. Others, like Sweden and Finland, prefer to move ahead without waiting.
This article has been updated with more information.