Orbán doubles down on Ukraine loan veto over Druzhba pipeline crisis

Politico Europe · Feb 23, 2026 · Collected from RSS

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News Financial Services Hungary refuses to sign off on the crucial loan until Kyiv resumes Russian oil flows. A Russian drone attack in late January damaged the Druzhba pipeline, which transports Russian oil that is vital to Hungary’s and Slovakia’s energy needs. February 23, 2026 11:57 am CET Hungarian Prime Minister Viktor Orbán on Monday blamed “an unprovoked act of hostility” from Ukraine to justify his decision to block the EU’s €90 billion loan to Kyiv, according to a letter he sent to European Council President António Costa. Orbán backed the loan in December on the basis that EU leaders exempted Czechia, Hungary and Slovakia from paying down the EU debt. That changed on Friday after Budapest and Bratislava accused Kyiv of slow walking repairs to the damaged 4,000-kilometer Druzhba pipeline, which carries Russian oil to Hungary and Slovakia. “Hungary did not oppose the decision based on the understanding that the loan will not have an impact on the financial obligations” of Prague, Budapest and Bratislava, Orbán wrote in a short letter, dated Feb. 23 and seen by POLITICO. “Recent developments have forced me to reconsider my position.” Costa's office was not immediately available for comment. Ukraine’s war chest will run out in April without fresh funds, putting Kyiv at a disadvantage against Russian forces and ongoing U.S.-led peace talks with the Kremlin. A Russian drone attack in late January damaged the Druzhba pipeline, which transports Russian oil that is vital to Hungary’s and Slovakia’s energy needs. The European Commission last week said that both countries have 90 days’ worth of oil supplies to avoid an immediate energy crunch. Orbán said Kyiv has refused to restore crude oil supplies via the pipeline since mid-February on political grounds, an accusation Ukraine has dismissed. Hungary and Slovakia are exempt from EU sanctions on Russian product. Russian oil accounted for for 92 percent of Hungary's energy imports last year, according to the Center for the Study of Democracy, a European policy institute. The Hungarian leader has weaponized anti-Ukraine sentiment ahead of April’s national election, with his political party, Fidesz, trailing the opposition, Tisza, in the polls by a wide margin. He has also used the pipeline issue to justify blocking the EU’s 20th sanctions package against Russia, which requires unanimous support to pass. Brussels had planned to unveil the package on the fourth anniversary of Moscow’s invasion of Ukraine, which is on Tuesday. Hungary can block the €90 billion loan because one of the three bills underpinning the financial aid also requires EU unanimity to expand the cash buffer of the EU’s long-term budget to issue the loan. EU ambassadors will discuss the sanctions package on Monday during the Foreign Affairs Council. Both initiatives remain stuck until the Druzhba pipeline crisis is resolved. “As long as this remains the case, Hungary will not support the amendment of the [multiannual financial framework] regulation necessary for the use of the EU budget headroom for the loan facility,” Orbán wrote.