Hungary has indicated it might block a €90 billion (around $106 billion) loan from the European Union intended for Ukraine unless oil shipments through the Druzhba pipeline are resumed. This was expressed by Hungarian Foreign Minister Péter Szijjártó, who stated on Friday that Hungary would resist EU funding efforts until oil transportation via the Russia-linked pipeline starts up again.
Szijjártó accused Ukraine of working with the EU and the Hungarian opposition to pressure Hungary by ceasing oil deliveries, which could disrupt supply in Hungary and increase fuel prices before elections. He also claimed that halting these shipments goes against the EU-Ukraine Association Agreement and Kyiv’s obligations to the EU.
The Druzhba pipeline has historically served as a crucial route for Russian oil to Central Europe, including Hungary, particularly as the EU aims to reduce reliance on Russian energy following Russia’s invasion of Ukraine in 2022.
Back in January, the European Commission approved a legal package for the proposed €90 billion loan to Ukraine for 2026-2027, designed to assist with the country’s budget and military needs. This financial package, known as the “Ukraine Support Loan,” is intended to provide approximately €60 billion for military aid and €30 billion for budget support.
The loan is set to be financed through EU borrowings in capital markets and is backed by the EU budget. There’s also mention that the EU might use Russian assets frozen in the bloc for repayments.
In response to Hungary and Slovakia’s actions regarding energy supplies, Ukraine’s Foreign Ministry dismissed their “ultimatums and threats,” calling their behavior “provocative and irresponsible,” asserting that it jeopardizes energy security in the region.
The ministry further explained that Ukraine is consistently in touch with the European Commission about damage to its energy infrastructure caused by ongoing Russian attacks and has informed both Hungary and Slovakia about how these attacks have impacted the Druzhba pipeline. They are also exploring alternative options for non-Russian oil supplies to these nations, emphasizing that Ukraine is a “reliable energy partner” for the EU and that such ultimatums should be directed at Moscow, not Kyiv.
