Hungary ties €90bn Ukraine loan to resumption of Druzhba Russian oil transit

Hungary has announced it will block the allocation of a €90 billion EU loan to Ukraine until oil transit to Hungary via the Druzhba pipeline resumes, escalating tensions over energy supplies and financial support for Kyiv.

Hungarian Foreign Minister Péter Szijjártó said on Friday that Budapest would oppose the joint EU borrowing package unless Russian oil flows through the Druzhba pipeline are restored.

“We are blocking the €90 billion EU loan for Ukraine until oil transit to Hungary via the Druzhba pipeline resumes,” Szijjártó wrote in a post on X.

He accused Ukraine of deliberately halting oil transit in coordination with Brussels and the Hungarian opposition. “Ukraine is blackmailing Hungary by halting oil transit in coordination with Brussels and the Hungarian opposition to create supply disruptions in Hungary and push fuel prices higher before the elections,” he said.

According to Szijjártó, by blocking oil transit to Hungary through the Druzhba pipeline, Ukraine is violating the EU-Ukraine Association Agreement and breaching its commitments to the European Union. “We will not give in to this blackmail,” he added.

The Financial Times reported, citing four sources, that Hungary’s ambassador to the EU on Friday expressed objections to borrowing funds for Ukraine through the issuance of debt guaranteed by the EU budget.

The dispute comes as the EU prepares to formally approve a €90 billion loan to Ukraine for 2026-2027. On 19 December, the European Council adopted a decision on joint borrowing for Ukraine in that amount, aimed at covering two-thirds of the country’s financial needs in 2026-2027 in both the budgetary and defence sectors, EUalive’s partner European Pradva reports.

At the same time, the EU summit approved an exception for Hungary, Slovakia and the Czech Republic, meaning the three countries will not participate in the allocation of the loan.

The legislative package that will allow Ukraine to receive the €90 billion loan in 2026-2027 is due to be finally approved by the Council of the European Union on 24 February.

A senior EU diplomat in Brussels, speaking on condition of anonymity, said the final adoption of the necessary legislative acts is expected at the meeting of the General Affairs Council on that date.

“We expect the final adoption of the package of legislative acts necessary to provide Ukraine with a loan of 90 billion euros to cover its financial needs for 2026 and 2027, on February 24 at the meeting of the EU Council on General Affairs,” the diplomat said.

He clarified that the issue will be included on the agenda as an item not requiring discussion and that a qualified majority of EU member states is required to adopt the decision.

“Ukraine will receive the necessary funds from the second quarter of this year,” the diplomat added.

The European Parliament on 11 February supported the European Commission’s proposal to provide Ukraine with a €90 billion loan. For the decision to enter into force, the Council must formally adopt the legislative package.

On 4 February, ambassadors of EU member states at a meeting of the Committee of Permanent Representatives (Coreper) agreed on mechanisms for providing Ukraine with the €90 billion, including allowing third countries to participate in the process.

According to the conclusions of the European Council, the decision on financial support for Ukraine in 2026-2027 will not create financial obligations for the Czech Republic, Hungary and Slovakia.

The conclusions state that, thanks to enhanced cooperation on the instrument based on Article 212 of the Treaty on the Functioning of the European Union, “any mobilisation of Union budget resources as a guarantee for this loan will not have an impact on the financial obligations of the Czech Republic, Hungary and Slovakia.”

The President of the European Commission stressed that the loan, which is to be provided on an interest-free basis, will not become a burden on the Ukrainian budget, and that Ukraine would only repay it when it receives reparations.

Hungary escalates energy feud: halts diesel exports to Ukraine amid Druzhba pipeline standoff

Caption: Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto holds a press conference following a cabinet meeting in Budapest, Hungary, 18 February 2026. Szijjarto announced that Hungary has stopped delivering diesel fuel to Ukraine, and would only resume it once Ukraine has restarted crude oil deliveries to Hungary through the Druzhba pipeline. The delivery of Russian crude oil through the Druzhba pipeline to Hungary was stopped on 27 January. EPA/BOGLARKA BODNAR HUNGARY OUT