Hungary to block €90 billion EU loan for Ukraine

By Ahmet Taş | Wise News Press

BUDAPEST, HUNGARY — Hungary has announced it will block a planned €90 billion emergency loan package for Ukraine, accusing Kyiv of "blackmailing" the country by obstructing Russian oil transit through the damaged Druzhba pipeline.

Hungarian Foreign Minister Peter Szijjarto declared on Friday that the blockade on financial aid would remain in place until the flow of Russian oil to Hungary via the transit route is restored. The administration alleges that Kyiv is working in coordination with Brussels and Hungarian opposition forces to disrupt energy supplies for political purposes ahead of Hungary’s general elections scheduled for April 12.

Energy Dispute at the Center of Conflict

The escalating tension stems from damage to the Soviet-era Druzhba pipeline following a Russian attack, which has significantly impacted transit flows. While Hungary accuses Ukraine of failing to take sufficient steps for repairs to raise fuel prices and create supply shortages, Ukraine has denied these allegations.

"We are blocking the €90 billion EU loan for Ukraine until the transit of oil to Hungary via the Druzhba pipeline resumes," Szijjarto stated in a social media post. Diplomatic sources confirmed to EuroNews that Hungarian representatives raised these objections during a closed-door meeting of EU ambassadors on Friday.

Legislative Obstacles and EU Voting Rules

The specific legal provision blocked by Hungary requires a unanimous vote because it involves changes to EU budget rules to allow borrowing for a non-EU member state. While two other regulations determining the structure and conditions of the aid were approved by a qualified majority on Friday, the overall package remains stalled due to Hungary's veto on the budget guarantee.

This move follows a pattern of Budapest negotiating last-minute concessions by withholding support for critical EU legislation. Although the package had previously been approved by the European Parliament, this rare late-stage obstruction threatens the EU's efforts to provide financial stability to Ukraine as the full-scale invasion enters its fourth year.

Rising Tensions Ahead of General Elections

The rhetoric from Budapest has sharpened as Prime Minister Viktor Orban faces a difficult re-election campaign, with polls suggesting he trails opposition forces by double digits. Orban has frequently accused Ukrainian President Volodymyr Zelenskyy of demanding funds and has argued that Ukraine’s potential EU accession would lead to a larger war.

Meanwhile, Ukraine remains in a dire humanitarian situation, with Russian strikes having devastated much of the country's energy infrastructure during the winter. The European Commission plans to hold an emergency meeting next week to address the escalating crisis, though Brussels has noted there is no immediate risk to Hungary's oil reserves.

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