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Hungary Threatens to Block $106B EU Loan for Ukraine

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A stone commemorates the Druzhba 2 crude oil pipeline in the Duna oil refinery on May 24, 2022 in Szazhalombatta, Hungary. (Source: Getty Images)
A stone commemorates the Druzhba 2 crude oil pipeline in the Duna oil refinery on May 24, 2022 in Szazhalombatta, Hungary. (Source: Getty Images)

Hungarian Foreign Minister Péter Szijjártó accused Ukraine of blackmailing Hungary by blocking the Druzhba oil pipeline, which was previously damaged by the Russian strike and caused disruptions in oil supply, Hungarian outlet Telex reported on February 20.

Speaking in Mátészalka city, Szijjártó claimed that the Ukrainian government, in collaboration with the EU and the Hungarian opposition, aims to create an oil shortage and increase gasoline prices by one thousand forints ahead of the elections.

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The halt of the pipeline was caused by a Russian strike on key infrastructure near the western Ukrainian town of Brody on January 27, according to the Ministry of Foreign Affairs of Ukraine.

Ministry of Foreign Affairs of Ukraine spokesperson, Heorhii Tykhyi, said the attack damaged “critical equipment” and made pumping impossible, adding that Hungary was informed of the cause the same day.

Szijjártó reiterated that as long as Ukraine continues to block the Druzhba pipeline and withhold oil shipments to Hungary, Hungary would oppose Ukraine’s access to a $106 billion war loan.

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

“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,” Szijjártó continued.

“By blocking oil transit to Hungary through the Druzhba pipeline, Ukraine violates the EU-Ukraine Association Agreement, breaching its commitments to the European Union. We will not give in to this blackmail,” he concluded.

The European Parliament recently approved legislation for this loan to support Ukraine in 2026-2027, following an agreement made by EU leaders in December. However, Hungary insists that the loan can only proceed if Hungary legally confirms it, which has not yet happened, Telex wrote.

Hungary had already announced its decision not to send diesel to Ukraine until oil shipments through the Druzhba pipeline resume.

Slovakia also made a similar announcement regarding oil shipments, although both countries are linked to the MOL group, which owns the Slovnaft oil company.

Despite the claim that gasoline prices would rise significantly, there is little clarity on how this would occur. Although MOL purchases cheaper oil through the Druzhba pipeline, it does not pass on the savings to consumers but rather profits from the deal, with Hungary benefiting from an extra-profit tax, according to Telex.

Notably, fuel prices in Hungary were 5% higher than the EU average in 2024. By 2025, even consumers in the Czech Republic—a country that historically shared a similar dependence on Russian oil but recently cut those ties—could purchase gasoline and diesel 18% cheaper than Hungarians.

Earlier, Ukrainian Foreign Minister Andrii Sybiha had pushed back on Péter Szijjártó after the latter dismissed the idea that Ukraine is defending Europe from Russian aggression.

In response, Sybiha issued a sharply worded post on X, invoking both Hungary’s own history and the role of ethnic Hungarians serving in Ukraine’s forces.

“I wonder what ethnic Hungarians who are defending Ukraine make of this shameless claim,” he wrote.

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