Druzhba flows paused over Russia’s oil transit cuts; Hungary, Slovakia pivot to root-out gaps as Kazakh shipments reroute. History: massive oil artery in Comecon.
On the fourth anniversary of Russia's invasion of Ukraine, the UK announced nearly 300 new sanctions, including targeting Transneft and Russia's shadow fleet of oil tankers, aiming to weaken Moscow's energy revenues and pressure Putin's war effort.
In March 2026, Hungary detained seven Ukrainian bank employees and seized $40 million, €35 million, and 9 kg of gold en route from Austria to Ukraine, citing money laundering suspicions. This incident intensified Hungary's dispute with Ukraine over halted Russian oil shipments via the Druzhba pipeline. Hungarian PM Viktor Orbán, facing April elections, accuses Ukraine of delaying pipeline repairs; Ukraine condemns Hungary's actions as illegal and politically motivated.
Hungary and Slovakia are constructing a 127 km pipeline to connect their refineries, aiming to improve energy supply amid Russian oil disruptions. The project, owned by Hungary's Mol Group, is expected to be completed by mid-2027. The move responds to ongoing tensions over Ukrainian pipeline access and Russian oil interruptions.
As of March 26, 2026, Hungarian Prime Minister Viktor Orban continues to block a €90 billion EU loan to Ukraine, agreed in December, due to a dispute over the Druzhba oil pipeline damaged by Russian attacks. Despite Ukraine accepting EU technical support to repair the pipeline, Orban insists the loan be withheld until oil flows resume, using the issue as a key point in his April 12 election campaign.
The EU has approved a previously stalled €90bn loan for Ukraine after Kyiv has repaired the Druzhba oil pipeline and Hungary and Slovakia have dropped objections once Russian oil flows restarted. The decision has come together with a 20th EU sanctions package on Russia, and funds are expected to start moving in the coming weeks.
Kazakhstan has redirected up to 100,000 metric tons of crude to the Baltic port of Ust-Luga and another 160,000 metric tons via the CPC in southern Russia, in a shift that follows attacks on the Druzhba pipeline and raises questions over supply to Germany and Berlin’s PCK refinery.
The EU has formally approved a €90 billion loan for Ukraine and a 20th package of sanctions on Russia, after Hungary lifted its veto. The funds will cover two-thirds of Kyiv’s needs over 2026–2027, with ~€17 billion annually diverted to defense and general budget needs like health and education. The cycle aims to sustain Ukraine while pressuring Russia, with disbursement starting in coming months.
Oil deliveries through the Druzhba pipeline to Hungary and Slovakia have resumed, with Hungary lifting a veto on an EU loan for Ukraine as the pipeline reopens after a months-long halt. Ukraine says repairs have been completed, while EU checks are ongoing before the loan disbursement, and the pipeline’s reopening is framed as easing a broader energy and political standoff.