April 22 (UPI) -- European Union ambassadors meeting in Brussels on Wednesday backed a long-delayed $106 billion loan to Ukraine and a 20th economic sanctions package on Russia.

The breakthrough came a day after Ukraine announced its damaged Druzhba pipeline, through which Russia supplies oil to Hungary and Slovakia, was ready to begin pumping again.

Leaders of the 27-member-country bloc will sign off on the measures at an informal summit in Cyprus on Thursday.

The financial package, which Ukraine badly needs to stay afloat and continue fending off invading Russian forces, was agreed in December but was held up after outgoing Hungarian Prime Minister Viktor Orban said he would withhold his backing while the pipeline remained out of action.

Orban held Kyiv responsible even though the pipeline was damaged in a Russian attack. The sides traded blackmail allegations, with Hungary accusing Ukraine of stalling repair work in a conspiracy with Brussels and the Hungarian opposition to "create supply disruptions" to push up fuel prices in Hungary ahead of elections.