Hungary Threatens to Block EU Loan to Ukraine Over Oil Transit Issues
Hungary is hinting at blocking a significant European Union loan of 90 billion euros (approximately $106 billion) intended for Ukraine. The Hungarian government insists that this action will continue until oil shipments through the Druzhba pipeline are resumed.
Hungarian Foreign Minister Péter Szijjártó expressed his concerns on social media, stating that Hungary will oppose the EU funding until oil transit through the Russian-linked pipeline is restored. He claimed that Ukraine is using the halt in oil transit as leverage against Hungary to disrupt supply and increase fuel prices ahead of upcoming elections. Szijjártó also stated that this blockade contradicts the EU-Ukraine Association Agreement, arguing that it violates Ukraine’s commitments to the EU.
The Druzhba pipeline has historically been crucial for transporting Russian oil to Central Europe, including Hungary. This comes as much of the EU has been trying to reduce its reliance on Russian energy sources following the invasion of Ukraine in 2022.
The European Commission recently moved forward with the loan package designed to bolster Ukraine’s budget and military needs over the next few years. This “Ukraine Support Loan” aims to provide about 60 billion euros for military aid and 30 billion for general budget support. The EU budget will guarantee the loan, and there are provisions for using frozen Russian assets in the EU to help repay it.
Ukraine’s Ministry of Foreign Affairs responded sharply to Hungary’s stance, rejecting what it called “ultimatums and blackmail.” They accused Hungary and Slovakia of taking moves that could threaten regional energy security and emphasized Ukraine’s ongoing communication with the European Commission regarding damage to its energy infrastructure from Russian attacks.
In its statement, Ukraine reaffirmed its reliability as an energy partner to the EU and insisted that any ultimatums should be directed toward Russia, not Ukraine.
