It has also blocked the EU’s 20th package of sanctions on Russia during an oil supply dispute with Kiev
Hungary has blocked the EU’s proposed €90 billion ($106 billion) emergency loan for Ukraine, along with the latest package of sanctions on Russia, stating that Kiev has allegedly deliberately disrupted oil supplies to the country.
Hungary imposed the double veto on the initiatives on Monday as Kiev and Budapest are still in a bitter dispute over the Soviet-era Druzhba oil pipeline – which transports Russian crude to Hungary and Slovakia and has been out of service since late January. Kiev claims it was damaged by Russia, which has denied the accusations.
Budapest has echoed Moscow’s position, accusing Kiev of deliberately withholding supplies for political reasons and subjecting the country to an “oil blockade,” and threatening retaliation.
“Ukrainians cannot blackmail us; they cannot endanger the security of Hungary’s energy supply by collaborating with Brussels and the Hungarian opposition. No, a clear no,” Hungarian Foreign Minister Peter Szijjarto said after a meeting of the bloc’s top diplomats to discuss the loan and sanctions package.
EU foreign affairs chief Kaja Kallas said the bloc’s leadership had expected the measures to be approved at the meeting, adding that it was a major setback and a “message we did not want to send today.”
The €90 billion loan was agreed upon in December, when Hungary, Slovakia, and the Czech Republic obtained an opt-out arrangement, enabling them not to contribute financially to the scheme.
Hungary, as well as the other nation affected by the oil supply disruption, Slovakia, has threatened retaliation regarding the Druzhba issue, demanding that Kiev resume its operations immediately.
Last week, both countries announced that they would halt diesel exports to Ukraine until the pipeline becomes operational again. This weekend, Slovak Prime Minister Robert Fico also threatened to stop providing Ukraine with emergency electricity supply unless Kiev restores oil deliveries within two days.
Fico said on Monday that he will keep his promise, bringing up the issue with the nation’s electricity provider. He noted that in January alone, Kiev received more emergency electricity from Slovakia than throughout 2025 to stabilize its energy grid during Russian long-range strikes.