Portugal Colonial - EU unblocks 90-bn-euro Ukraine loan after Hungary row

Diplomats said the definitive sign-off should come by Thursday as Budapest waits for Russian oil to arrive through the Druzhba pipeline after Kyiv said operations had restarted.

The bitter feud over the pipeline pitted Hungary's nationalist premier Viktor Orban against Ukrainian President Volodymyr Zelensky, stalling the vitally needed funds for Kyiv.

Resolving the standoff will allow Brussels to start paying out the loan in the coming months that Ukraine requires to plug its budget four years into Moscow's invasion.

"Implementation of our agreement with the European Union to unblock a €90-billion support package for Ukraine over two years is now effectively underway," Zelensky, who is expected to join a summit of EU leaders in Cyprus on Thursday, posted online.

"The unblocking is the right signal under the current circumstances. Russia must end its war."

Kremlin-friendly Orban -- who suffered a crushing election defeat this month -- had vowed that he would not budge until Ukraine repaired the pipeline hit by a Russian strike.

Officials said Wednesday Ukraine had restarted pumping oil to Hungary and Slovakia, a day after Zelensky announced the repairs had been completed.

Hungarian energy giant MOL said it "expects the first crude oil shipments following the restart of the Ukrainian section of the pipeline system to arrive in Hungary and Slovakia by tomorrow at the latest".

Slovakia's Economy Minister Denisa Sakova also said the first deliveries were expected in the early hours of Thursday, in a post on Facebook.

Hungary and Slovakia -- among the most Kremlin-sympathetic EU member states -- had accused Kyiv of dragging its feet over the repairs.

Zelensky has made no secret of his opposition to the fact that some EU members still buy Russian oil and gas -- a key source of revenue for Moscow to fund its invasion launched more than four years ago.

- Sanctions approved -

The row with Hungary has held up EU support for Ukraine at a time when the United States has largely cut Kyiv off and eased sanctions on Russian oil amid the Iran war.

Orban's loss in elections after 16 years in power had fuelled hopes the funds would be unlocked -- and the EU could move past the frequent blockages experienced during his tenure.

But EU officials had believed they might have to wait until his pro-EU successor Peter Magyar took office in May to get it approved.

EU countries also gave the preliminary go-ahead to a fresh round of sanctions on Russia that had been stalled by both Hungary and Slovakia over the pipeline row.

The new round of economic punishment for Moscow -- the 20th from the EU since the war started in 2022 -- includes measures on Russia's energy, banking and trade sectors.

Zelensky on Tuesday had urged the EU to begin ratcheting up sanctions on Moscow again at a time when US President Donald Trump has eased pressure on the Kremlin.

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L.Henrique--PC