Budapest threatened to block a new package of European Union sanctions against Russia and to stall financial aid to Ukraine, escalating a dispute over the continued flow of Russian oil through Ukraine. The move, announced Sunday by Hungarian Foreign Minister Péter Szijjártó, came ahead of a scheduled meeting of EU foreign ministers in Brussels on Monday to discuss the bloc’s 20th round of sanctions targeting Moscow, timed to coincide with the fourth anniversary of Russia’s full-scale invasion of Ukraine on Tuesday.
Szijjártó stated Hungary would not consent to the adoption of the sanctions package until Ukraine resumes Russian oil shipments via the Druzhba pipeline. “We will not allow decisions that are key to them to be approved,” he said in a video posted to social media. The interruption of Russian oil deliveries to Hungary and Slovakia began on January 27, following what Ukrainian officials attributed to damage caused by Russian drone attacks on pipeline infrastructure.
For the sanctions to be enacted, unanimous approval from all 27 EU member states is required. Hungary and Slovakia, both members of the EU and NATO, have been exceptions in maintaining and, in some cases, increasing their reliance on Russian oil and gas, benefiting from a temporary exemption within an EU policy aimed at curtailing Russian energy imports.
Szijjártó also announced Saturday that Hungary would block a proposed 90-billion-euro ($106-billion) EU loan package intended to support Ukraine’s military and economic needs over the next two years. This stance mirrors a similar threat from Slovakia, with Prime Minister Robert Fico stating Saturday his country would halt emergency electricity supplies to Ukraine if oil deliveries are not restored by Monday.
Hungary’s Prime Minister Viktor Orbán, widely considered the EU leader most aligned with the Kremlin, has consistently argued that Russian fossil fuels are vital to his nation’s economy, claiming that transitioning to alternative energy sources would trigger an immediate economic collapse. This argument has been disputed by some analysts. Orbán has previously threatened to obstruct EU sanctions against Russia and has criticized efforts to reduce Russian energy revenues that fund the war in Ukraine, as well as vetoing EU assistance to Ukraine.
The dispute over oil transit comes as Ukraine accuses Russia of deliberately targeting its energy infrastructure. According to Ukrainian officials, the damage to the Druzhba pipeline was a direct result of Russian attacks. Hungary and Slovakia, however, maintain that Ukraine is intentionally delaying repairs for political reasons, a claim Kyiv denies.
The situation is further complicated by Hungary and Slovakia’s recent decision to halt diesel shipments to Ukraine earlier this week, also in response to the oil interruptions. The EU’s proposed €90 billion loan to Ukraine is now in jeopardy, potentially hindering Kyiv’s ability to sustain its war effort and participate effectively in ongoing peace talks with Russia, according to sources familiar with the negotiations.
The White House had previously explored Budapest as a potential location for peace talks involving the U.S., Russian, and Ukrainian presidents, but the current escalation of tensions casts doubt on the feasibility of such negotiations in the near future.