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Orbán-Costa Dispute: Hungary Blocks EU Aid Over Oil Pipeline

EU Support for Ukraine Stalled as Hungary Blocks Aid and Sanctions

A dispute over oil supplies has escalated tensions between Hungary and Ukraine, leading to a standstill in European Union efforts to provide financial and political support to Kyiv. The impasse, occurring on the fourth anniversary of Russia’s full-scale invasion, threatens a €90 billion loan package for Ukraine and a 20th round of sanctions against Moscow.

The conflict centers on the Druzhba oil pipeline, which Hungary relies on for a significant portion of its oil imports. Budapest maintains that Ukraine is deliberately hindering the resumption of oil flows through the pipeline, potentially creating an energy crisis. Ukraine, however, attributes the disruption to damage caused by a Russian drone strike and asserts that repairs are ongoing despite continued threats.

European Council President António Costa directly appealed to Hungarian Prime Minister Viktor Orbán on Monday, urging him to respect the EU’s December decision to approve the €90 billion loan. In a letter, Costa emphasized that agreements reached by EU heads of state and government carry binding obligations for all member states, and deviation from this principle constitutes a breach of loyal cooperation.

Orbán responded with a letter of his own, stating that “facts are stubborn things” and arguing that there are no technical obstacles preventing the resumption of oil shipments, only a political decision from Ukraine. He shared the letter on his official Facebook page, calling the situation “absurd,” arguing that while the EU considers financial aid for Ukraine, Kyiv is allegedly creating an energy crisis within Hungary.

Orbán declared he could not support any decision favorable to Ukraine until oil deliveries return to normal. This stance has drawn criticism from Ukrainian officials, who accuse Hungary and Slovakia of issuing “ultimatums, and blackmail.” The Ukrainian Foreign Ministry contends that such actions jeopardize energy security across the region, while Russia continues to target Ukraine’s energy infrastructure.

According to Ukrainian officials, the damage to the Druzhba pipeline was caused by a Russian drone attack. They have informed both Hungary and Slovakia of the extent of the damage and proposed alternative oil supply routes, including utilizing the Odessa-Brodi pipeline for non-Russian oil. Ukraine positions itself as a reliable transit country for the EU and suggests that any grievances should be directed towards the Kremlin.

The pipeline ceased operations at the end of January following the reported drone strike. Slovakia’s Transpetrol indicated that Ukraine has postponed the resumption of shipments until February 25th, without providing a specific reason. However, Budapest and Bratislava attribute the delay to political obstruction by Ukraine.

The situation escalated further in late February, with Hungary and Slovakia suspending diesel deliveries to Ukraine and raising the possibility of limiting exports of electricity and gas. While Hungary asserts its fuel supply is currently secure, it has indicated It’s prepared to take retaliatory measures.

The dispute highlights a growing rift within the EU over its approach to supporting Ukraine. Hungary’s actions have been described as a “new low” by some European officials, raising concerns about the principle of sincere cooperation among member states. The outcome of this standoff will have significant implications for Ukraine’s ability to defend itself against Russia and for the EU’s credibility as a unified actor on the international stage.

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