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Hungary Blocks €90 Billion Ukraine Loan Over Pipeline Dispute, Drawing EU Criticism

Key Points
  • Hungary is blocking a €90 billion EU emergency loan to Ukraine over a dispute about repairing a Russian oil pipeline damaged in January.
  • EU leadership has accused Hungary of breaching the bloc's principle of sincere cooperation, while Sweden's foreign minister called the move 'illogical' and 'disloyal'.
  • Hungary has also vetoed a new round of sanctions against Russia, with the timing potentially linked to upcoming Hungarian elections where Prime Minister Orbán trails in polls.

Hungary has blocked a €90 billion emergency loan to Ukraine, triggering sharp criticism from European Union leadership and member states. The decision, announced by Hungarian Foreign Minister Péter Szijjártó, links financial assistance for Kyiv to the restoration of Russian oil transit through a damaged pipeline.

Szijjártó accused Ukraine of "blackmail" over the Druzhba pipeline, which was damaged in a Russian drone attack in January. Hungary claims Ukraine is not doing enough to repair the pipeline, despite Kyiv's assertion that emergency repair works are ongoing but complicated by relentless Russian bombardment.

I'm very frustrated with this, and it's not logical, because it was Russia that bombed this pipeline. So I think that their frustration should be directed towards the Kremlin and not towards Ukraine or the EU.

Maria Malmer Stenergard, Sweden's Foreign Minister

Sweden's Foreign Minister Maria Malmer Stenergard called Hungary's position "illogical" and "disloyal." In an interview with Euronews, she stated: "I'm very frustrated with this, and it's not logical, because it was Russia that bombed this pipeline. So I think that their frustration should be directed towards the Kremlin and not towards Ukraine or the EU."

The EU's top leadership has accused Hungary of breaching the bloc's principle of sincere cooperation. High Representative Kaja Kallas said the veto was "not really in accordance with the sincere cooperation clause that we have in the EU treaties." European Council President António Costa told Hungarian Prime Minister Viktor Orbán that decisions blessed by EU leaders "must be respected."

not really in accordance with the sincere cooperation clause that we have in the EU treaties.

Kaja Kallas, EU High Representative

The financial assistance program was agreed in December after grueling negotiations and was in the final legislative stage, with the first disbursement expected in early April. Hungary, Slovakia, and the Czech Republic had secured opt-outs from financially contributing to the loan.

In addition to blocking the Ukraine loan, Hungary has also vetoed a new round of sanctions against Russia that Brussels wanted approved by February 24, the fourth anniversary of Russia's full-scale invasion of Ukraine. Some EU officials have suggested Hungary's timing may be related to upcoming general elections in April, where Prime Minister Orbán is reportedly trailing in polls.

must be respected.

António Costa, European Council President

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