Ukraine set to resume Druzhba oil transit as EU €90bn aid decision looms

Ukraine is set to resume oil transit via the Druzhba pipeline on Wednesday, in a move Kyiv hopes will unlock a frozen €90 billion European Union aid package and ease tensions with key European partners.

 

A senior industry source confirmed the restart hours after Ukrainian President Volodymyr Zelenskyy announced that repairs to the pipeline network had been completed. The infrastructure was damaged in a Russian strike on a pumping station in January.

“Oil pumping is scheduled to begin tomorrow at lunchtime,” the source said, speaking anonymously due to the sensitivity of the issue. Hungary’s MOL has submitted the first transit request, with initial volumes to be shared between Hungary and Slovakia.

Dispute over pipeline resolved

The suspension of flows through the southern branch of the Druzhba (“Friendship”) pipeline triggered sharp criticism from Hungary and Slovakia, both of which rely heavily on Russian crude delivered via the route under exemptions from wider EU sanctions.

Officials in Budapest and Bratislava accused Kyiv of delaying repairs for political leverage, claims Ukraine denied, citing the difficulty of restoring infrastructure under sustained attack.

Tensions escalated when Hungary’s then prime minister, Viktor Orbán, vetoed a €90 billion EU loan package for Ukraine despite prior approval by the European Council. The move drew criticism from other EU members.

The political situation shifted after Orbán lost re-election on 12 April. This opened the way for progress, with Zelenskyy announcing on Tuesday that repairs had been completed ahead of schedule.

The dispute had strained relations between Kyiv and parts of the EU. Zelenskyy previously accused some European actors of “blackmail” over pressure to prioritise pipeline repairs while Ukraine remains under military attack.

European Council President António Costa thanked Zelenskyy on X, signalling improved relations.

Pressure mounts for EU funding release

With repairs complete, Zelenskyy has urged Brussels to release the €90 billion package without delay.

“There can now be no grounds for blocking it,” he said in his nightly address. “The European Union asked Ukraine to repair the Druzhba oil pipeline… We have repaired it. We hope that the European Union will also implement the agreements.”

Ukraine remains heavily dependent on Western financial support as the war continues. The finance ministry estimates it needs $52 billion in external funding this year alone, with officials warning of possible shortfalls by June without EU assistance.

EU foreign policy chief Kaja Kallas said she expected a decision within 24 hours following talks in Luxembourg. European Economic Commissioner Valdis Dombrovskis said funding for 2026 was largely secured, with an initial disbursement likely by late May or early June.

Ongoing risks to energy transit

Despite the breakthrough, uncertainty remains over the long-term reliability of the Druzhba route.

The Kremlin said Russia was ready to resume flows. However, industry sources indicated Moscow may halt shipments of Kazakh oil to Germany via a northern branch of the pipeline from 1 May, highlighting continued instability.

The pipeline was a central issue in Hungary’s recent election campaign, with Orbán accusing Ukraine of attempting to influence the vote by restricting supplies. His successor, Péter Magyar, has called for a pragmatic approach, urging both Ukraine and Russia to restore safe and reliable transit.

Oil volumes through Ukraine have already declined, reaching a 10-year low of 9.7 million tonnes last year, according to Kyiv-based consultancy ExPro.

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Zelenskyy reiterated calls for European countries to reduce reliance on Russian energy routes. “No one can currently guarantee that Russia will not repeat attacks on the pipeline infrastructure,” he said, warning that transit routes across Ukraine remain vulnerable while the war continues.

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