Hungary Threatens to Block EU Sanctions and Aid to Ukraine Over Oil Dispute

Budapest is threatening to veto both a new package of EU sanctions against Russia and a planned €90 billion loan to Ukraine, escalating a dispute over the resumption of Russian oil supplies via the Druzhba pipeline. The move comes as the four-year anniversary of Russia’s full-scale invasion of Ukraine approaches.

Hungary Accuses Ukraine of Blackmail

Hungarian Foreign Minister Péter Szijjártó announced on Sunday that Hungary would not support the 20th package of EU sanctions until Ukraine restores oil supplies to Hungary through the Druzhba pipeline. Szijjártó stated, “We will not agree to the adoption of the 20th package of sanctions, because we have already made it clear – until the Ukrainians restore oil supplies to Hungary, we will not allow them to approve important decisions.” PBS

This stance builds on a previous threat made on Friday, where Szijjártó warned that Budapest would block the €90 billion EU loan to Ukraine if the oil supply through the Druzhba pipeline isn’t reinstated. Politico

Disrupted Oil Supplies and Conflicting Claims

Oil supplies from Russia via the Druzhba pipeline, which traverses Ukrainian territory, were suspended at the end of January, leading to oil shortages in both Hungary and Slovakia. Politico Kyiv attributes the suspension to damage caused by Russian drone attacks, even as Hungary and Slovakia, which have temporary exemptions from EU sanctions on Russian oil imports, contend that Ukraine is deliberately delaying repairs to the pipeline. Politico

Hungary and Slovakia have, in turn, suspended diesel supplies to Ukraine due to the disruptions in Russian oil deliveries.

EU Response and the Need for Unanimity

The EU requires unanimous agreement from all 27 member states to approve both sanctions packages and financial aid. The European Union has expressed concerns over Russia’s lack of engagement in peace talks. An EU spokesperson stated that there are “no tangible signs that Russia is engaging seriously” with the aim of securing peace in Ukraine, responding to recent talks in Geneva. The Guardian The EU also affirmed that any negotiations concerning Ukraine must include European participation. The Guardian

Impact on Ukraine

The potential blockage of the €90 billion loan poses a significant challenge for Ukraine, as its financial resources are expected to dwindle from April. Without fresh funding, Kyiv may struggle to sustain its war effort and could be disadvantaged in ongoing peace negotiations with Russia. Politico

The EU continues to monitor the situation and respond to Russia’s ongoing aggression against Ukraine, having implemented numerous measures since the start of the conflict. European Council