Russian oil pipeline reopening unblocks EU loan
Officials say Russian oil is flowing through the Ukrainian section of the Druzhba pipeline after a months-long stoppage, allowing Hungary to lift its veto on a huge EU loan that Kiev urgently needs.
The Druzhba pipeline has become one of the most politically charged infrastructures in Europe since a Russian drone attack damaged the pipeline in western Ukraine and halted Russian oil shipments to Hungary and Slovakia.
Hungarian oil group MOL said on Wednesday that Ukraine had informed it of the resumption of deliveries of Russian crude through the pipeline.
“MOL expects the first shipment of crude oil following the restart of the Ukrainian section of the pipeline system to arrive in Hungary and Slovakia no later than tomorrow,” MOL said in a statement. he said.
Pumping began in the morning local time, said an industry source, who requested anonymity because he was not authorized to speak publicly. Shortly afterwards, EU ambassadors gathered in Brussels and approved a 90 billion euro (A$148 billion) loan.
The European Union’s 27 member states are expected to officially sign the agreement on Thursday afternoon.
Ukrainian President Volodymyr Zelenskiy said the EU’s decision was “the right signal under the current conditions.”
Writing on
The EU agreed in principle last year to the loan to maintain Ukraine’s liquidity until 2026 and 2027, but Hungarian Prime Minister Viktor Orban and the Slovak government blocked the loan, accusing Ukraine of delaying the repair of the pipeline, which Kiev denied.
Both Hungary and Slovakia are heavily dependent on Russian oil, and Orban has consistently backed Russia.
Ukraine’s chances of getting a loan had already increased after Orban lost the parliamentary elections in Hungary on April 12. The leader of the winning party, Peter Magyar, said he would no longer block EU funds destined for Kiev, although he is not expected to come to power until next month.
The capacity of Druzhba, which means friendship in Russian, is 1.2 to 1.4 million barrels of oil per day, and this capacity is likely to increase up to 2 million barrels per day. But flows have fallen to a fraction of that as a result of Western sanctions as well as repeated disruptions due to drone strikes.
Separately, Germany confirmed that Kazakhstani crude oil will not reach its PCK Schwedt refinery, one of the country’s largest, from May after industry sources said on Tuesday that Russia was preparing to halt Kazakhstan oil exports via the Druzhba pipeline.
