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EU Leaders Condemn Hungary's Orbán for Blocking €90bn Ukraine Loan Over Pipeline Dispute

EU leaders condemn Hungary's Viktor Orbán for blocking a €90bn Ukraine loan over a damaged Russian oil pipeline dispute, calling it disloyalty and blackmail ahead of Hungary's elections.

·4 min read
AFP via Getty Images Headshot of Hungarian Prime Minister Viktor Orbán. He has short, grey hair.

EU Leaders Accuse Orbán of Disloyalty and Blackmail Over Ukraine Loan Veto

European Union leaders have criticized Hungary's Prime Minister Viktor Orbán for blocking a €90 billion (£77 billion) loan intended for Ukraine. Orbán refused to lift his veto during a summit in Brussels, citing a dispute over a damaged pipeline that transports Russian oil to Hungary.

"No oil = no money,"
Orbán stated in a post on X following the Thursday summit.

German Chancellor Friedrich Merz condemned Orbán's actions as

"a gross act of disloyalty"
, while European Council President António Costa described them as tantamount to
"blackmail"
.

Orbán's Position and Energy Dependence

Orbán has maintained close ties with Russia since its full-scale invasion of Ukraine in 2022 and has made opposition to Ukraine a central issue ahead of Hungary's elections on 12 April. Hungary relies heavily on Russian energy supplies, and Orbán accuses Ukraine of disrupting these by failing to repair the Soviet-era Druzhba pipeline, which carries Russian oil through Ukraine to Hungary and Slovakia.

Kyiv asserts that the pipeline was damaged in January by Russian air strikes and that repairs will take several weeks. Additionally, Ukraine contends that restoring the pipeline's flow would effectively mean lifting sanctions on Moscow.

While the pipeline remains non-operational, Orbán has blocked the release of EU funds to Ukraine, despite having previously approved the decision at an earlier meeting.

A map showing two strands of the Druzhba oil pipeline from Russia into Europe in red. One strand goes through Hungary into Ukraine before connecting to another strand going into Russia.

Reactions from EU Leaders

The EU leaders' summit on Thursday extended late into the night, with many expressing frustration and anger at Orbán's veto.

German Chancellor Merz told reporters early Friday,

"Colleagues who have been members of the European Council far longer than I have were deeply angered by what happened today. It is a gross act of disloyalty within the European Union. I am firmly convinced that it will leave deep marks."

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French President Emmanuel Macron described the outcome as

"unprecedented"
and emphasized that the loan's release must be
"implemented without delay."

Council President António Costa added,

"Nobody can blackmail the European institutions."
He labeled Hungary's actions as
"completely unacceptable."

Orbán's Response and Political Context

Following the meeting, Orbán remained firm in his position. On X, he wrote,

"It was a tough debate, but we stood our ground. We have the right to say 'no' to the Ukrainian war loan. As long as @ZelenskyyUa does not lift the oil blockade, they will not receive any money from Brussels."

The controversy centers on Orbán's reversal of a promise made at the December summit to allow the loan to proceed. At that time, Hungary, Slovakia, and the Czech Republic consented after being exempted from financial obligations related to the loan. However, Hungary is now blocking the necessary implementing legislation.

Alongside Orbán, Slovakia's Prime Minister Robert Fico, another ally of Russian President Vladimir Putin, also refused to endorse the summit's conclusions reaffirming the intent to release funds to Ukraine. The release requires unanimity, and the matter will be revisited at the next leaders' meeting.

EU Commission and Ukrainian Leadership Statements

European Commission President Ursula von der Leyen pledged that the loan would be delivered

"one way or the other,"
while Macron stated there would be
"no plan B"
because
"plan A must be implemented."

Prior to the summit, Ukrainian President Volodymyr Zelensky appealed to EU leaders for the release of funds, stating,

"For the third month now, the most important financial security guarantee for Ukraine from Europe is not working - the €90bn support package for this year and the next. This is critical for us. It is a resource to protect lives."

Orbán's Election Strategy and Previous Actions

Orbán has repeatedly delayed EU aid to Ukraine and successive sanctions on Russia. He is campaigning for another term, with opinion polls indicating his party is trailing behind main opponents.

This article was sourced from bbc

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