Zelenskyy expects EU to release $106M loan after Druzhba pipeline repairs.

Ukrainian President Volodymyr Zelenskyy has confirmed that the Druzhba pipeline, a critical Soviet-era artery transporting Russian oil to Europe, is now repaired and ready to resume operations. This development follows damage inflicted during Russia's full-scale invasion in late January. The restoration of this flow holds significant political weight for Kyiv, as it is directly tied to the release of a 90-million-euro ($106 million) European Union loan that has been held in abeyance. President Zelenskyy stated he anticipates this repair will compel the European Union to unblock the funds, a position reinforced by EU foreign policy chief Kaja Kallas, who expects a positive decision within the next 24 hours.

The path to this funding was obstructed primarily by Hungary, which alongside Slovakia has withheld approval on the grounds that Kyiv had not yet completed the necessary repairs to the pipeline. Despite these demands, which critics argue amount to an indefinite stalling tactic, Zelenskyy insists that Ukraine has fully complied with all European Council requirements. The diplomatic pressure is mounting as Hungarian Prime Minister Viktor Orban prepares to leave office following recent elections, a shift that may remove the final hurdle for the loan's release. EU ambassadors are scheduled to convene on Wednesday to cast the final vote, with Kallas expressing confidence that the long-awaited greenlight will be granted soon.

While the EU lifted the ban on seaborne Russian oil imports after the February 2022 invasion, land-based flows through pipelines like Druzhba were permitted to continue. However, the Kremlin has maintained that it is technically ready to restart these flows only when Ukraine ceases what Moscow describes as blackmail. For Ukraine, securing this specific tranche of EU financing is essential to address looming deficits in its national budget, although it has successfully secured alternative funding sources in the interim.

Amidst these diplomatic maneuvers and the push for pipeline restoration, military tensions remain high. Ukrainian security officials reported that drones struck an oil-pumping and dispatch facility in the Russian Samara region overnight. The targeted installation, located in the village of Prosvet, is an integral component of the Druzhba supply chain, highlighting the continued vulnerability of Russia's energy infrastructure.