Budapest – A 90 billion euro EU loan package intended to support Ukraine’s war effort and stabilize its economy is facing a renewed roadblock, as Hungarian Prime Minister Viktor Orbán has signaled he will continue to block the disbursement unless his conditions are met. The announcement, made over the weekend, throws into doubt the financial lifeline Kyiv desperately needs, with Ukrainian officials warning of severe consequences if funds are not delivered in the coming weeks.
The reversal comes after what appeared to be a tentative agreement reached in December. European Commission President Ursula von der Leyen arrived in Kyiv on Tuesday, February 24th, intending to present the aid package alongside new sanctions targeting Russia, according to reports. Though, Orbán’s renewed opposition casts a shadow over those efforts.
“If the money doesn’t arrive on time, it will be a huge problem – not only for the army, but likewise for other state institutions,” said Andreas Umland, a political scientist at the European Policy Institute in Kyiv. The loan was intended to provide Ukraine with financial security for the next two years, including crucial funding for arms purchases.
Orbán’s move is not entirely unexpected, according to Umland. “This behavior fits into a larger pattern: the country maintains special relationships with the US, China and Russia.” He added that the Hungarian government frequently expresses views that contradict or are ambiguous towards EU policy.
Beyond the immediate financial implications, Orbán’s actions are also linked to upcoming elections in Hungary and a broader strategy to position himself against the EU mainstream. “Orbán is trying to put pressure on the EU, it’s about campaigning and making Ukraine a domestic political issue in Hungary,” Umland explained. This includes an anti-European election campaign and a pledge to block Ukraine’s potential EU membership.
The situation is further complicated by the fact that Hungary is not alone in its reservations. According to reports, both the Czech Republic and Slovakia initially agreed to the loan only on the condition that they be excluded from any joint debt liability. This suggests a wider reluctance within the EU to fully shoulder the financial burden of supporting Ukraine.
Another point of contention involves the Druzhba pipeline, which supplies much of Eastern Europe with Russian oil. Hungary, Slovakia, and the Czech Republic are connected to the pipeline via a section that runs through Ukraine. Ukrainian officials have reported damage to the pipeline due to Russian attacks, leading Slovak Prime Minister Robert Fico to temporarily halt emergency deliveries to Ukraine. Orbán, according to Umland, is leveraging this situation to portray the pipeline as responsible for Hungary’s socioeconomic problems.
Umland expressed hope that a legal solution could be found, allowing the EU to implement the aid package even without the support of Hungary, the Czech Republic, and Slovakia. However, as of Tuesday, no such solution had been announced, and the fate of the 90 billion euro loan package remains uncertain.
