Ukraine has repaired the damaged Druzhba pipeline that carries Russian oil to Europe and is ready to resume supplies — unblocking what Kiev hopes was the last hurdle to securing tens of billions of euros in support from Brussels.
The pipeline has been at the centre of a standoff between Hungary and Slovakia, which still import Russian oil via the pipeline, Ukraine, and the European Union.
Kiev can restart pumping Russian oil to the two EU countries as soon as it gets a formal request, a source in Kiev told AFP.
Hungary's outgoing nationalist leader Viktor Orban had held up a much needed 90-million-euro ($105 million) loan for Ukraine as leverage to pressure Kiev to resume deliveries, accusing it of stalling repairs.
His defeat in elections earlier this month was seen as paving the way for the money to be unlocked.
"Ukraine has completed repair work on the section of the Druzhba oil pipeline that was damaged by a Russian strike," Zelensky wrote in a statement published on social media.
"The pipeline can resume operation," he added.
Ukraine said the pipeline was damaged late January by Russian strikes.
Kiev had vowed to repair it, but Zelensky warned on Tuesday that Moscow's forces could attack the pipeline again.
Hungary and Slovakia — among the most Kremlin-sympathetic EU member states — had accused Kiev of dragging its feet over the repairs.
Zelensky has made no secret of his staunch 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.
Zelensky urges more Russia sanctions
Shortly after confirming repairs had been complete, Zelensky spoke with EU Commission chief Ursula von der Leyen over the fate of the long-delayed 90-billion-euro loan.
"It is important that we begin receiving them soon. All necessary steps on Ukraine's side have been taken," he said on social media after the call.
Talking to reporters in Luxembourg, EU foreign policy chief Kaja Kallas said: "We expect an agreement in 24 hours. So I don't want to jinx it. I hope that everything goes well."
"Hopefully all the obstacles are removed," she added.
A source in Zelensky's office told AFP Kiev could start pumping oil immediately.
"It's a technical matter — once there is a request for pumping, it will start working," they said.
Kiev has also stepped up its aerial attacks on Russian energy sites in recent months with the aim of bleeding Russian exports — an effort Kiev refers to as its own "long-range sanctions."
Kiev needs the EU funds to plug looming holes in its budget, but has managed to secure enough money from other backers while Budapest stalled the loan.
The bloc's 27 members need to unanimously approve an amendment to its budget to get the loan going.
EU chief Antonio Costa welcomed Zelensky's announcement.
"Thank you President (Zelensky) for delivering, as agreed: repairing the Druzhba pipeline and restoring its operation," he said on social media.
Despite announcing the reopening of the pipeline, Zelensky called on Ukraine's allies to step up sanctions on Moscow and to source new energy suppliers.
"We must continue systematic sanctions pressure on Russia over this war and work on further diversifying energy supplies to Europe," Zelensky said in the statement.
"Europe must be independent from those who seek to destroy or weaken it," he added.