Oil for cash? Orbán signals Druzhba pipeline restart could unlock EUR 90 billion EU loan to Ukraine

Hungary’s outgoing prime minister Viktor Orbán has indicated that crude oil deliveries via the Druzhba pipeline could resume as early as Monday, following what he described as “mediation from Brussels”. The development may pave the way for Budapest to lift its veto on a EUR 90 billion EU loan package for Ukraine.

In a Facebook post on Sunday, Orbán said Ukraine had signalled its readiness to restart oil transit through the Druzhba pipeline if Hungary subsequently withdraws its opposition to the EU financial package.

“Hungary’s position remains unchanged: if there is oil, there is money,” Orbán wrote, adding that once supplies resume, Budapest will no longer block the loan. He also stressed that the financing would not impose a financial burden or responsibility on Hungary.

Pipeline disruption and repair efforts

The Druzhba pipeline, one of Europe’s key routes for Russian crude, has been out of operation since January, when a Russian strike hit infrastructure in Ukraine, including the major Brody pumping station.

As Telex writes, Ukrainian President Volodymyr Zelensky has repeatedly stated that repairs are underway and could be completed by the end of April. While not a full restoration, he said the system would be functional enough to resume deliveries.

“We promised to fix it by the end of April: not completely, but sufficiently to make it operational,” Zelensky said previously, linking the timeline to broader EU commitments and ongoing political disputes with Hungary. The European Union has also offered financial support to help cover the cost of repairs, which Ukraine has accepted.

Orbán and Zelensky had a lengthy feud about the pipeline

The dispute over the pipeline has become entangled in wider political tensions between Budapest and Kyiv. Hungary’s outgoing government had accused Zelensky of deliberately halting oil transit to influence Hungary’s recent parliamentary elections: claims Kyiv firmly rejected.

In response to the disruption, Hungary announced in March that it would gradually halt gas supplies to Ukraine until oil transit through Druzhba resumed.

Meanwhile, freshly elected prime minister Péter Magyar has questioned the government’s renewed focus on the EU loan, noting that a decision on the package had already been made in December and does not directly apply to Hungary. He suggested that Budapest is unlikely to ultimately block the disbursement.

In case you missed it: after Orbán’s defeat, Fico presses on, as Slovakia challenges EU’s Russian gas ban.

Putin and the Kremlin downplays Hungary’s importance

The EUR 90 billion loan package—agreed by EU leaders last December to support Ukraine in 2026–2027—remains formally blocked due to Hungary’s veto. However, EU foreign policy chief Kaja Kallas has indicated the bloc may move to unblock the funds as early as next week, alongside discussions on a new sanctions package.

The Kremlin has downplayed Hungary’s leverage. Spokesman Dmitry Peskov said the EU would ultimately find a way to release the funds regardless of Budapest’s position. “One way or another, they would have found a way to unblock this money, with or without Orbán,” he said, warning against “harbouring any illusions” about Hungary’s ability to prevent the decision.

If oil flows through Druzhba are indeed restored in the coming days, Hungary’s conditional stance suggests a potential breakthrough in the long-running standoff. However, with political tensions still high and EU leaders preparing to revisit the issue, the situation remains fluid.

EU funds or Russian energy? Hungary needs to decide what’s more important.