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Druzhba pipeline is set to restart oil flows to Europe, potentially unblocking EU's Ukraine loan

FILE PHOTO: The Druzhba oil pipeline between Hungary and Russia is seen at the Hungarian MOL Group's Danube Refinery in Szazhalombatta, Hungary, May 18, 2022. REUTERS/Bernadett Szabo/File Photo/File Photo
The Druzhba oil pipeline between Hungary and Russia is seen at the Hungarian MOL Group's Danube Refinery in Szazhalombatta, Hungary, May 18, 2022. - REUTERS/Filepic

BUDAPEST: Ukraine has told Hungarian oil group MOL that deliveries of Russian crude will resume through the Druzhba pipeline, MOL said on Wednesday, potentially allowing Budapest to unblock a 90-billion-euro (US$105.79 billion) loan for Kyiv.

The pipeline has become one of the most politically charged pieces of infrastructure in Europe since a Russian drone strike damaged the pipeline in western Ukraine and halted Russian oil deliveries to Hungary and Slovakia.

Outgoing Hungarian Prime Minister Viktor Orban, who was ousted in elections on April 12, and the Slovak government had accused Ukraine of delaying the repairs, which Kyiv has denied.

Ukraine will resume pumping oil through the Druzhba pipeline on Wednesday, an industry ​source told Reuters on Tuesday, after President Volodymyr Zelenskiy said repairs were complete and urged the EU to unblock a 90-billion-euro (US$105.74 billion) loan halted by the arguments ‌over the pipeline.

"JSC Ukrtransnafta, the company responsible for operating the Ukrainian section of the Druzhba pipeline, has officially informed MOL that repair works on the Druzhba Pipeline have been completed and that the force majeure conditions in effect since 27 January 2026 ceased as of 6 p.m. on 21 April 2026," MOL said in a statement.

"According to the notification, JSC Ukrtransnafta is ready to resume crude oil transit to Hungary and Slovakia."

HUNGARY'S ELECTION WINNER CALLED FOR RESUMPTION OF OIL

Hungarian election winner Peter Magyar called on Zelenskiy on Monday to reopen the damaged pipeline as soon as it is functional, and for Russia to resume shipments.

With the prospect of oil flowing again, ambassadors of EU countries in Brussels will reopen the discussions on the final approval for the EU loan that Budapest had blocked pending the resumption of oil exports.

Hungary as an EU member state has the power to block the EU loan even though it is not contributing to it. The loan will cover two thirds of Ukraine's financing needs in 2026 and 2027 as it fends off Russia's invasion.

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