Orban blocks the 90 billion EU Loan Package to Ukraine

Hungarian Prime Minister 

Viktor Orbán has recently blocked a €90 billion ($106 billion) EU loan package for Ukraine, despite previously agreeing to it in December.

Key Details of the Blockage

• The Dispute: Hungary and Slovakia are demanding that Ukraine restore oil flows through the Druzhba pipeline, which were halted in late January after a Russian drone attack.
• Accusations of “Blackmail”: Orbán and Foreign Minister Péter Szijjártó claim Ukraine is deliberately withholding repairs to “blackmail” Hungary. Ukraine maintains the pipeline is damaged due to ongoing Russian strikes.
• The Veto: Although Hungary received an exemption from paying for the loan, Orbán is using his veto power over one specific bill—an amendment to the EU’s long-term budget rules—that requires unanimous consent from all 27 member states.
• Wider Obstruction: Alongside the loan, Hungary is also blocking the 20th package of EU sanctions against Russia. 

Context and EU Response

• Election Pressure: Critics and several EU foreign ministers suggest Orbán’s move is tied to Hungary’s upcoming April 12 general election, where his Fidesz party is currently trailing in the polls.
• EU Commitment: European Council President António Costa and Commission President Ursula von der Leyen have stated the EU will find a way to deliver the funds “one way or the other,” implying they may use legal tools to bypass the veto.
• Alternative Supply: Croatia has offered to provide Hungary and Slovakia with 100% of their oil needs via its JANAF pipeline as an alternative to the Druzhba route.