Hungary has blocked a proposed €90bn EU loan for Ukraine, threatening efforts to stabilise Kyiv’s public finances ahead of the fourth anniversary of the Russia-Ukraine war.
The veto was raised by Hungary’s EU ambassador, halting a December agreement by EU leaders to allow the European Commission to borrow against the EU budget and lend the funds to Ukraine. Unanimity among all 27 member states is required.
Prime Minister Viktor Orbán linked the move to a dispute over the Druzhba pipeline, accusing Kyiv of blocking oil transit.
“As long as Ukraine blocks the Druzhba pipeline, Hungary will block the €90bn Ukrainian war loan,” Orbán said on Friday (20 February). “We won’t be blackmailed!”
Key developments:
• Loan conditional for an €8bn IMF programme now under negotiation.
• Hungary, Slovakia and Czech Republic sought exemption from repayment liability.
• Polls show Péter Magyar’s Tisza Party leading Orbán’s Fidesz before April elections.
• Belgium, France and Italy opposed alternative use of frozen Russian assets.
Without EU support, Ukraine faces a widening 2026 budget gap.
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