BRUSSELS — European Union leaders are intensifying pressure on Hungarian Prime Minister Viktor Orban to lift his veto on a massive €90 billion loan package intended to support Ukraine, as divisions within the bloc threaten to delay critical financial aid.
The loan, agreed in principle late last year, is aimed at helping Ukraine sustain its economy and government functions amid the ongoing war with Russia. However, its implementation has been stalled due to Hungary’s refusal to approve the final steps, which require unanimous backing from all EU member states.
At the center of the dispute is a damaged Soviet-era oil pipeline known as Druzhba, which carries Russian oil through Ukraine to Hungary and Slovakia. Budapest has linked its support for the loan to the restoration of oil flows, arguing that its energy security has been compromised.
Other EU leaders have strongly criticized Hungary’s position, accusing Orban of using the situation for political leverage, especially ahead of upcoming elections in his country. Officials from several member states warned that blocking the loan undermines European unity and risks leaving Ukraine without urgently needed financial support.
Efforts have been made to resolve the standoff, including proposals for the EU to help repair the pipeline and even explore alternative oil supply routes for Hungary. Despite these attempts, Orban has remained firm, insisting that guarantees on energy supply must come first before any agreement on the loan.
The deadlock has highlighted the challenges of decision-making within the EU, where a single member state can block major initiatives. Diplomats have suggested that if Hungary does not relent, the bloc may explore ways to bypass the veto, though such a move would require strong political consensus.
As the war in Ukraine continues, the delay in financial support has raised concerns about Kyiv’s economic stability. EU leaders are expected to continue negotiations in the coming days, but the standoff underscores deep divisions within Europe over energy, politics and support for Ukraine.