Hungary Blocks EU Aid to Ukraine Over Russian Oil Dispute | AP News

BUDAPEST, Hungary — Hungary is escalating a dispute with Ukraine and the European Union, blocking a proposed €90 billion ($106 billion) EU loan to Kyiv and halting diesel shipments in response to disruptions in Russian oil flows. The move, announced by Hungarian Foreign Minister Péter Szijjártó on Friday, underscores Hungary’s continued reliance on Russian energy and its willingness to leverage that dependence for political concessions.

The immediate trigger for Hungary’s actions is the interruption of Russian oil shipments via the Druzhba pipeline, which began on January 27th. Ukrainian officials attribute the disruption to damage caused by a Russian drone attack. Hungary and Slovakia, however, allege – without providing evidence – that Ukraine deliberately halted supplies. Both countries have temporary exemptions from EU sanctions prohibiting Russian oil imports, recognizing their dependence on the resource.

Szijjártó accused Ukraine of “blackmailing” Hungary and vowed to block the EU loan, stating, “We will not give in to this blackmail. We do not support Ukraine’s war, we will not pay for it.” He added that Hungary would withhold support for any EU decisions beneficial to Ukraine as long as oil supplies remain interrupted. This stance represents a significant hardening of Hungary’s position, even considering its previously expressed reservations about substantial financial aid to Ukraine.

The threatened veto comes just days after Hungary suspended diesel shipments to Ukraine, further tightening the pressure. Slovakia’s populist Prime Minister Robert Fico has similarly threatened to halt emergency electricity supplies to Ukraine if Russian oil flows are not restored by Monday. Hungary is also reportedly considering cutting off its own electricity supplies.

The EU had previously reached a deal to circumvent Hungary’s opposition to the €90 billion loan package. While Hungary, Slovakia, and the Czech Republic initially opposed the plan, a compromise was reached where they would not block the loan and would be protected from any resulting financial repercussions. This workaround now appears to be in jeopardy.

Hungary’s continued reliance on Russian energy sets it apart from nearly all other European nations, which have drastically reduced or eliminated their dependence on Russian fossil fuels since Russia’s full-scale invasion of Ukraine in February 2022. Prime Minister Viktor Orbán has consistently argued that Russian energy is essential for Hungary’s economy, claiming that switching to alternative sources would lead to economic collapse – a claim disputed by some experts.

Orbán’s government has been a vocal critic of EU sanctions against Russia and has frequently opposed efforts to curtail Russia’s energy revenues. He is widely viewed as the Kremlin’s strongest advocate within the EU. This latest move is consistent with a pattern of behavior that has strained Hungary’s relationships with its European partners.

The dispute over the Druzhba pipeline highlights the vulnerabilities inherent in Europe’s energy infrastructure and the geopolitical risks associated with reliance on a single supplier, particularly one engaged in an active conflict. While Hungary and Slovakia secured exemptions from the EU’s Russian oil import ban, their continued dependence gives Russia a degree of leverage over these nations and, potentially, over EU policy towards Ukraine.

The timing of Hungary’s actions, coinciding with the fourth anniversary of Russia’s full-scale invasion, is likely not coincidental. It signals a clear message of defiance towards the EU’s support for Ukraine and a continued prioritization of Hungary’s national interests, as defined by the Orbán government, even at the expense of European solidarity.

The situation raises questions about the long-term sustainability of Hungary’s energy policy and its relationship with the EU. While Orbán has repeatedly asserted that his government is acting in the best interests of the Hungarian people, critics argue that his policies are isolating Hungary and undermining European security. The outcome of this dispute will likely have significant implications for both Ukraine’s financial stability and the future of EU-Hungary relations.