Hungary Blocks €90B Ukraine Aid Over Oil Pipeline Dispute
Hungary is blocking a proposed 90 billion euro ($106 billion) loan to Ukraine from the European Union, demanding the resumption of Russian oil shipments via the Druzhba pipeline, Hungarian Foreign Minister Péter Szijjártó announced Friday. The move threatens to delay crucial financial aid to Ukraine as it continues to defend against Russia’s invasion.
Szijjártó stated on X, formerly Twitter, “We will block the 90 billion euro EU loan for Ukraine until it resumes oil shipments to the country via the Druzhba pipeline.” The pipeline has been disrupted since January 27, following what Ukraine attributed to Russian drone attacks that damaged infrastructure. Hungary and Slovakia, both reliant on Druzhba for their oil supplies, have accused Ukraine of deliberately hindering the resumption of flows.
Budapest announced Thursday it would release approximately 1.8 million barrels of crude oil from its strategic reserves to mitigate the shortfall, but maintains the issue is a matter of political pressure. Szijjártó accused Ukraine of attempting to manipulate fuel prices ahead of upcoming elections in Hungary, where Prime Minister Viktor Orbán faces a challenging political landscape.
The EU had reached a political agreement in December to provide the 90 billion euro loan to Ukraine over two years, a deal subsequently approved by the European Parliament last week. Final approval from the Council of the European Union was considered a formality. However, Hungary’s veto throws that process into uncertainty.
An EU Commission spokesperson, responding to inquiries, reiterated the agreement reached at the EU summit and stated, “We expect all member states to respect this political agreement with regard to the final adoption of the loan.”
The dispute comes amid broader tensions between Hungary and Ukraine. Earlier this week, Ukrainian Foreign Minister Andrii Sybiha accused Szijjártó of dismissing Ukraine’s role in European security as a “massive lie,” suggesting the Hungarian minister’s views were influenced by “Russian awards and energy profits.” Szijjártó had previously asserted that Ukraine is not defending Europe, a claim Sybiha sharply criticized.
Hungary has been a vocal critic of EU sanctions against Russia and has continued to import Russian oil and gas, arguing that such supplies are vital to its economy. Orbán has also questioned the feasibility of Ukraine’s EU membership, stating that Hungary does not foresee supporting Kyiv’s accession for the next century. President Zelenskyy responded to Orbán’s comments, suggesting he was more focused on personal gain than on bolstering Ukraine’s defense.
In a separate development Wednesday, Hungary announced it would suspend diesel shipments to Ukraine until the Druzhba pipeline issue is resolved. This action further escalates the dispute and adds another layer of complexity to the ongoing efforts to support Ukraine financially and militarily.