Resumption of Oil Flow Through Druzhba Pipeline Signals EU Loan Approval for Ukraine
Oil flows via Druzhba pipeline resumes; EU to adopt new Russian sanctions
Business Standard
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Russian oil resumed flowing through the Ukrainian section of the Druzhba pipeline after a months-long halt, enabling Hungary to lift its veto on a €90 billion ($105.79 billion) EU loan for Ukraine. The EU is expected to formally approve the loan, which aims to support Ukraine through 2026-2027 amid ongoing tensions with Russia.
- 01Oil deliveries through the Druzhba pipeline resumed after months of suspension.
- 02Hungary lifted its veto on a significant EU loan for Ukraine following the resumption.
- 03Ukrainian President Volodymyr Zelenskiy welcomed the EU's decision as a positive signal.
- 04The capacity of the Druzhba pipeline is between 1.2 million to 1.4 million barrels per day.
- 05Germany confirmed that Kazakh crude will not reach its PCK Schwedt refinery due to Russian export halts.
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On Wednesday, Russian oil began flowing through the Ukrainian section of the Druzhba pipeline, which had been halted for months due to geopolitical tensions. This resumption allowed Hungary to lift its veto on a €90 billion ($105.79 billion) European Union loan for Ukraine, aimed at maintaining the country's liquidity through 2026 and 2027. Ukrainian President Volodymyr Zelenskiy praised the EU's decision as a necessary signal to pressure Russia to end its aggression. The Druzhba pipeline, meaning 'friendship' in Russian, has a capacity of 1.2 million to 1.4 million barrels of oil per day, though actual flows have been significantly reduced due to sanctions and drone attacks. The EU's 27 member states are expected to formally approve the loan shortly after the resumption of oil pumping. Separately, Germany announced that it would not receive Kazakh crude at its PCK Schwedt refinery due to Russia's decision to halt Kazakhstan's oil exports via the Druzhba pipeline.
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The resumption of oil flow is crucial for Hungary and Slovakia, which rely heavily on Russian oil, and it enables Ukraine to secure vital financial support.
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