Budapest is threatening to veto a proposed €90 billion loan to Ukraine — valued at approximately $106 billion — unless oil shipments via the Druzhba pipeline resume.
Hungarian Foreign Minister Péter Szijjártó posted on X Friday that Hungary would block the EU funding package until oil transit through the Russia-connected Druzhba pipeline restarts.
“Ukraine is blackmailing Hungary by halting oil transit in coordination with Brussels and the Hungarian opposition to create supply disruptions in Hungary and push fuel prices higher before the elections,” Szijjártó declared.
He additionally argued that obstructing oil transit violates Kyiv’s commitments to the European Union.
The Druzhba pipeline has long served as a critical artery for Russian oil to Central European nations, including Hungary, even as most of the EU has worked to reduce dependence on Russian energy since Moscow’s 2022 full-scale invasion of Ukraine.
The European Commission in January adopted a legislative package to implement a previously agreed support mechanism for 2026 and 2027, targeting the country’s budgetary and military needs, according to a press release.
The financing mechanism, dubbed the “Ukraine Support Loan,” would be structured as a limited recourse facility, with approximately €60 billion assigned for military aid and €30 billion set aside for general budget support.
The Commission stated the funding aims to help Ukraine maintain essential state functions and strengthen resilience as the war with Russia continues.
The loan would be financed through joint EU borrowing on capital markets, guaranteed by the EU budget. The Commission also noted that the EU reserves the right to use frozen Russian assets within the bloc, in line with EU and international law, to repay the loan.
Ukraine’s Ministry of Foreign Affairs on Saturday rejected what it termed “ultimatums and blackmail” from Hungary and Slovakia over energy supplies, accusing both nations of actions it called “provocative, irresponsible, and threatening to energy security.”
“Ukraine maintains constant contact with European Commission representatives regarding the damage caused by daily Russian strikes. We have also provided information to the governments of Hungary and Slovakia about the consequences of these Russian attacks on Druzhba oil pipeline infrastructure,” the ministry said in a statement. “Security and stabilization repair work continues amid daily threats of new missile attacks. Ukraine has also proposed alternative ways to resolve the issue of supplying non-Russian oil to these countries.”
It added that Ukraine remains a “reliable energy partner” for the European Union and argued that “ultimatums should be sent to the Kremlin, not Kyiv.”