Hungary announced on Friday it was blocking a €90 billion ($106 billion) European Union loan intended to support Ukraine’s 2026–2027 budget and military needs, citing disruptions to Russian oil deliveries via the Druzhba pipeline.
The veto at the EU level requires unanimous approval from all 27 members.
Hungarian Foreign Minister Péter Szijjártó confirmed on X that Budapest is linking its veto of the loan to interruptions in Russian oil transit through the Druzhba pipeline.
Szijjártó said Hungary is blocking the loan until shipments to Hungary resume. He accused Ukraine of deliberately halting transit in coordination with Brussels and the Hungarian opposition to create supply disruptions and push fuel prices higher ahead of upcoming elections.
“By blocking oil transit to Hungary through the Druzhba pipeline, Ukraine violates the EU‑Ukraine Association Agreement, breaching its commitments to the European Union. We will not give in to this blackmail,” Szijjártó added.
EU loan details
The loan, politically endorsed at a summit in Brussels earlier this month, is intended to prevent a funding shortfall in Kyiv. Under the plan, $35 billion (€30 billion) would support Ukraine’s general budget, and $71 billion (€60 billion) would fund weapons and ammunition. The funds would be raised through joint EU borrowing, guaranteed by the EU budget.
Hungary, Slovakia, and Czechia are to be exempt from financial obligations, including annual interest payments. The European Commission estimates the remaining 24 member states would contribute $2.4–3.5 billion (€2–3 billion) per year collectively.
Hungary’s ambassador to the EU has objected to the plan, according to the Financial Times.
Procurement rules prioritise suppliers in Ukraine, the EU, Iceland, Liechtenstein, Norway, and Switzerland. If necessary, Kyiv may purchase equipment from countries such as the United States.
Nations with defence partnerships with the EU, including the United Kingdom, Japan, South Korea, and Canada, may also participate if they contribute proportionately to the loan’s financing.
Disbursements would be phased and tied to conditions, including safeguards on anti-corruption reforms. Repayment would only be required if Moscow ends its aggression and compensates Ukraine for war damage.
Tensions have intensified as Prime Minister Viktor Orbán has escalated his rhetoric ahead of April elections, portraying Ukraine as reliant on foreign aid and warning that its EU ambitions could prolong the conflict with Russia.
The immediate trigger for the dispute is a disruption to Russian oil transit via the Druzhba pipeline, the southern branch of which crosses Ukraine into Hungary and Slovakia.
Deliveries stopped after a 27 January Russian airstrike, according to Ukraine’s Foreign Minister Andrii Sybiha, who published images showing the burning conduit. Budapest has blamed Kyiv for failing to restore transit promptly, while Ukraine denies the accusation.
No Russian oil has reached Hungary or Slovakia in February. January flows averaged 150,000 barrels per day, compared with roughly 200,000 barrels per day in the first two months of 2022–2025.
The European Commission has scheduled an emergency meeting next week to address the crisis, though Brussels says Hungary’s oil reserves remain sufficient in the short term.
Szijjártó said diesel shipments to Kyiv would be suspended until transit resumes. EU sanctions exemptions allow Hungary and Slovakia to import Russian oil by sea if pipelines are disrupted, though the EU embargo on seaborne imports from Russia, adopted in December 2022, remains in effect.
Budapest and Bratislava have requested Croatia facilitate deliveries via the Adria pipeline from the Adriatic coast. Croatia’s Economy Minister Ante Šušnjar rejected claims of technical or financial obstacles, saying supplies could be ensured immediately.
Hungary’s veto highlights the intersection of energy security and war financing in the EU’s response to Russia’s invasion of Ukraine.
U.S. President Donald Trump says China's Xi Jinping agreed Iran must reopen the Strait of Hormuz, as Tehran prepares a new shippin...
Bulgaria has won the Eurovision Song Contest for the first time, taking victory in a final overshadowed by a boycott over Israel’s parti...
The World Health Organization (WHO) has declared an Ebola outbreak in the Democratic Republic of Congo (DRC) and Uganda a Public Health Emergency o...
At least eight people were injured after a driver rammed a car into pedestrians in the northern Italian city of Modena, authorities said on Saturda...
Félicien Kabuga, one of the last remaining suspects linked to the 1994 Rwandan genocide, has died in custody at the age of 93, a United Nati...
U.S. President Donald Trump says China's Xi Jinping agreed Iran must reopen the Strait of Hormuz, as Tehran prepares a new shipping mechanism. Tensions over the U.S. blockade and stalled nuclear talks continue to disrupt global oil supplies.
Bulgaria has won the Eurovision Song Contest for the first time, taking victory in a final overshadowed by a boycott over Israel’s participation and the war in Gaza.
The World Health Organization (WHO) has declared an Ebola outbreak in the Democratic Republic of Congo (DRC) and Uganda a Public Health Emergency of International Concern (PHEIC), warning that the situation poses a significant risk of cross-border spread in Central Africa.
At least eight people were injured after a driver rammed a car into pedestrians in the northern Italian city of Modena, authorities said on Saturday. Four of the victims were reported to be in serious condition.
Iran’s Foreign Minister Abbas Araghchi said Tehran has “no trust” in the United States and will only consider negotiations if Washington shows seriousness. His remarks came as talks on Iran’s nuclear programme continued, with Trump and Xi also opposing Iran acquiring nuclear weapons.
U.S. President Donald Trump said Washington could destroy Iran’s infrastructure “in two days,” while Tehran warned the U.S. would face growing economic costs from the conflict. The remarks came as Hezbollah reported new attacks on Israeli forces despite an extended Lebanon ceasefire.
At least eight people were injured after a driver rammed a car into pedestrians in the northern Italian city of Modena, authorities said on Saturday. Four of the victims were reported to be in serious condition.
Russia and Ukraine exchanged prisoners of war as well as the bodies of fallen soldiers, on Friday (15 May). The swap came as Ukranian officials said Moscow had carried out its largest aerial attack over 48 hours since the conflict started.
At least eight people have died and 32 others were injured after a freight train collided with a public bus at a railway crossing in Bangkok on Saturday (16 May), triggering a fire that quickly spread through the vehicle.
China has launched the world’s first experiment to study how artificial human embryos develop in space, marking a major step in understanding whether humans could one day reproduce beyond Earth.
Every day, an elderly woman in China’s Shandong province looks forward to a video call from her son. He asks about her health, tells her he has been busy with work, and promises he will come home once he has saved enough money. She tells him she misses him. He tells her to take care of herself.
At least eight people were injured after a driver rammed a car into pedestrians in the northern Italian city of Modena, authorities said on Saturday. Four of the victims were reported to be in serious condition.
Félicien Kabuga, one of the last remaining suspects linked to the 1994 Rwandan genocide, has died in custody at the age of 93, a United Nations court said on Saturday.
Tens of thousands of demonstrators took to the streets of central London on Saturday (16 May) as two large-scale protests unfolded simultaneously - one focused on immigration and national identity, the other held in support of Palestinians and to mark Nakba Day.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment