Oil is expected to resume flowing through the Druzhba pipeline this week, a critical technical milestone that officials hope will clear the path for the European Union to finalize a €90 billion ($106 billion) financial aid package for Ukraine.

The pipeline, a vital energy artery for Central Europe, has been offline since sustaining heavy damage during a Russian attack in January. 

Before the outage, the Druzhba served as a primary supply line for refineries in Hungary and Slovakia.

Technical tests were scheduled for Tuesday to confirm the integrity of the repairs, according to sources familiar with the matter who spoke on the condition of anonymity because they were not authorized to discuss the sensitive operations publicly.

The restoration of the pipeline is seen as a diplomatic linchpin. Its closure had complicated regional energy security and added friction to negotiations over Kyiv’s massive recovery loan. 

With the technical hurdles largely cleared, EU leaders are signaling that the multi-billion-euro package is back on track for a final vote.

"Ukraine really needs this loan, and it is also a sign that Russia cannot outlast Ukraine," said Kaja Kallas, EU High Representative for Foreign Affairs and Security Policy. 

Speaking ahead of a Foreign Affairs Council meeting, Kallas expressed confidence that a "positive decision" on the €90 billion loan would be reached Wednesday, April 22.

The diplomatic breakthrough follows high-level technical meetings in Budapest between European Commission delegates and the team of Hungary’s incoming Prime Minister, Péter Magyar. 

While Hungary has frequently stalled aid measures for Kyiv, Magyar indicated his government would not block this specific package. Although Budapest will not participate in the funding, the decision has already been finalized.

EU ambassadors are expected to provide the final sign-off on the package on Wednesday.

Beyond the loan, Kallas noted that the EU remains hopeful that the easing of energy tensions will help unblock a separate round of sanctions against Russia, which has remained stalled due to internal disagreements within the bloc.