Hungary to block key EU loan to Ukraine until Russian oil shipments resume

Hungary will block a planned 90-billion-euro ($106-billion) European Union loan to Ukraine until the flow of Russian oil through the Druzhba pipeline resumes, Hungary's foreign minister said.

Russian oil shipments to Hungary and Slovakia have been interrupted since January 27, after Ukrainian officials said a Russian drone attack damaged the Druzhba pipeline, which carries Russian crude across Ukrainian territory and into Central Europe.

Hungary and Slovakia, which have both received a temporary exemption from an EU policy prohibiting imports of Russian oil, have accused Ukraine — without providing evidence — of deliberately holding up supplies.

In a video posted on social media Friday evening, Foreign Minister Peter Szijjarto accused Ukraine of “blackmailing” Hungary by failing to restart oil shipments. He said his government would block a massive interest-free loan the EU approved in December to help Kiev to meet its military and economic needs for the next two years.

“We will not give in to this blackmail. We do not support Ukraine’s war, we will not pay for it,” Szijjarto said. “As long as Ukraine blocks the resumption of oil supplies to Hungary, Hungary will block European Union decisions that are important and favorable for Ukraine.”

Hungary's decision to block the key funding for Ukraine came two days after it suspended shipments of diesel to its embattled neighbour until oil flows through the Druzhba were resumed, and only days before the fourth anniversary of Russia's full-scale offensive.

Indispensable fuels

Nearly every country in Europe has significantly reduced or entirely ceased Russian energy imports since Moscow launched its war in Ukraine on February 24, 2022. Yet Hungary — an EU and NATO member — has maintained and even increased its supply of Russian oil and gas.

Hungary’s Prime Minister Viktor Orban has long argued Russian fossil fuels are indispensable for its economy and that switching to energy sourced from elsewhere would cause an immediate economic collapse.

Not all of the EU's 27 countries agreed to take part in the 90-billion-euro loan package for Ukraine. Hungary, Slovakia and the Czech Republic opposed the plan, but a deal was reached in which they did not block the loan and were promised protection from any financial fallout.