BY EMMANUEL OGBONNA
Hungary has announced it will block a planned €90 billion ($106 billion) European Union financial package for Ukraine unless Russian oil deliveries through the Druzhba pipeline resume, escalating tensions between Budapest and Kyiv amid the ongoing war.
Foreign Minister Péter Szijjártó said his government would withhold support for the interest-free loan approved by the EU in December, arguing that Ukraine has failed to restore oil transit through its territory. The Druzhba pipeline, one of the largest oil pipeline networks in the world, carries Russian crude across Ukraine into Central Europe, supplying refineries in Hungary and Slovakia.
Oil shipments to both countries have been disrupted since Jan. 27 after Ukrainian officials reported that a Russian drone attack damaged a section of the pipeline infrastructure on Ukrainian soil. The interruption has strained energy supplies in Hungary and Slovakia, two European Union and NATO members that continue to rely heavily on Russian fossil fuels despite the broader European push to sever energy ties with Moscow.
In a video posted to social media on Friday evening, Szijjártó accused Ukraine of using the disruption as leverage against Hungary. “We will not give in to this blackmail. We do not support Ukraine’s war, we will not pay for it,” he said. He added that as long as oil flows remain suspended, Hungary will block EU decisions deemed important for Ukraine, specifically the multibillion-euro assistance package intended to cover Kyiv’s military and economic needs over the next two years.
The European Union’s €90 billion loan program was designed to provide long-term macro-financial support to Ukraine as it continues to defend itself against Russia’s invasion and stabilize its economy under wartime conditions. While the majority of the EU’s 27 member states backed the initiative, Hungary, Slovakia and the Czech Republic initially opposed the measure. A compromise was eventually reached in which those countries did not veto the loan but secured assurances that they would be shielded from potential financial liabilities associated with the package.
Hungary’s latest move now threatens to unravel that agreement.
The dispute has also spilled into reciprocal measures. Earlier this week, Hungary and Slovakia suspended diesel shipments to Ukraine in response to the oil supply disruption. On Saturday, Slovak Prime Minister Robert Fico warned that Slovakia would halt emergency electricity supplies to Ukraine if oil transit through the Druzhba pipeline does not resume by Monday. Hungarian officials have similarly indicated they are examining the possibility of curtailing electricity exports to their embattled neighbor.
The energy standoff unfolds just days before the fourth anniversary of Russia’s full-scale invasion of Ukraine on Feb. 24, 2022. Since that date, nearly every European country has sharply reduced or eliminated imports of Russian oil and gas in an effort to cut off a key source of revenue for Moscow’s war effort. However, Hungary and Slovakia have continued to import significant volumes of Russian energy, benefiting from temporary exemptions granted by the EU when it adopted sanctions targeting Russian crude.
Hungary’s nationalist Prime Minister Viktor Orbán has repeatedly defended his country’s reliance on Russian energy supplies, arguing that an abrupt shift to alternative sources would severely damage Hungary’s economy. He has maintained that Russian oil and gas remain essential to preserving industrial output and shielding Hungarian households from soaring energy prices. Some energy analysts, however, dispute the inevitability of economic collapse, pointing to diversification options pursued by other European states.
Orbán has emerged as one of the most outspoken critics within the EU of sanctions against Moscow, frequently challenging measures aimed at restricting Russia’s energy revenues. His government has on several occasions threatened to veto EU assistance to Ukraine or delay sanctions packages, positioning itself as a dissenting voice within the bloc.
Hungary and Slovakia have accused Ukraine — without presenting public evidence — of deliberately withholding oil transit through the Druzhba pipeline. Ukrainian authorities have attributed the disruption to infrastructure damage caused by a Russian drone strike, framing the interruption as a consequence of ongoing hostilities rather than political maneuvering.
The Druzhba pipeline, constructed during the Soviet era, remains a critical artery for landlocked Central European economies. Its southern branch delivers crude oil to refineries in Hungary and Slovakia, which were engineered specifically to process Russian-grade oil. While diversification efforts are underway, including increased imports via alternative routes, the transition remains complex and costly.
The European Commission has not yet publicly responded to Hungary’s threat to block the loan package, but EU officials have previously emphasized the importance of unity in supporting Ukraine financially and militarily. The loan is considered a cornerstone of the bloc’s medium-term strategy to ensure Kyiv’s fiscal stability and sustain essential government services amid prolonged conflict.
As the war grinds on, energy infrastructure and transit routes have become flashpoints in the broader geopolitical struggle. The current impasse underscores the fragile balance between European solidarity with Ukraine and the domestic political and economic calculations of member states that remain tethered to Russian energy supplies.
Whether Hungary will follow through on its threat to veto the EU’s financial assistance package may depend on developments in the coming days, including the status of repairs to the Druzhba pipeline and any diplomatic efforts to defuse the escalating dispute.
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