European Union leaders voiced their anger at Hungarian Prime Minister Viktor Orbán over his blockade of a new €90 billion ($104 billion) loan for Ukraine despite an earlier commitment.
“It is an act of gross disloyalty,” said Merz after an EU summit in Brussels on Thursday. “There has never been anything like it.”
Much to the dismay of many fellow EU leaders, Orbán had approved the loan at a previous summit in December before his government changed course in a spat with Kiev over halted oil deliveries from Russia.
“This will leave deep scars,” Merz said, warning of the consequences of Orbán’s u-turn.
French President Emmanuel Macron echoed Merz’s comments. The unanimous agreement on the loan “must be respected and implemented without delay, in accordance with the principle of loyal cooperation,” he said.
Orbán however ruled out lifting his government’s veto on the loan, as well as on the EU’s 20th sanction package on Moscow, until Russian oil deliveries through Ukraine resume through the contested Druzhba pipeline.
“I will never support any kind of decision here which is in favour of Ukraine,” Orbán said. “The Hungarian position is very simple. We are ready to support Ukraine when we get our oil, which is blocked by them.”
The Druzhba pipeline delivered Russian oil through Ukraine to Hungary and Slovakia until, according to Kiev, it was damaged by a Russian strike in January. The halt of fuel deliveries further heightened tensions between Budapest and Kiev.
Hungary has demanded that Kiev repair the pipeline quickly and resume transit. According to Ukraine, a quick repair has not been possible.
Challenging Kiev’s claims, Budapest has vetoed a new package of sanctions on Russia and blocked the disbursement of the loan to Ukraine.
According to EU officials, Ukraine has recently accepted technical and financial assistance from the EU to repair the pipeline. Kiev however said that the necessary repairs would take another month and a half.
European Council President António Costa said that Hungary was not acting in good faith by attaching conditions to the loan that neither the EU nor its member states could ensure.
Russia has repeatedly struck the pipeline since it invaded Ukraine, Costa said. Continuously repairing the damage caused by Russia was neither the responsibility of Ukraine nor of the EU, he said.
Only Russia can decide whether it will again attempt to destroy the Druzhba pipeline or not, Costa said.
EU hopes for first Ukraine loan disbursement as planned
Despite Hungary’s persistent resistance, a joined statement backed by 25 of the bloc’s 27 member countries stated that EU leaders “look forward to the first disbursement to Ukraine by the beginning of April” as planned.
In addition to Orbán, Slovakian Prime Minister Robert Fico refrained from backing the statement.
In a video posted on social media, Fico said that no progress was made at the Brussels meeting and no date has been set for the resumption of Russian oil deliveries.
The funds are intended to cover Ukraine’s most urgent financial needs until the end of 2027 and enable the country to continue its defence against Russia.
For now, no alternatives to the loan package are openly being discussed. Should the deadlock persist, capitals could theoretically provide the necessary guarantees instead of using the joint EU budget to secure the loan, which requires unanimous approval.
Orbán’s government is facing a tough parliamentary election in April, fuelling speculation that the veto of the new aid measures are part of his re-election bid.
“There may also be domestic political reasons in Hungary for the prime minister blocking this payment,” said Merz, adding that perhaps time will tell that the loan will eventually happen.
Viktor Orban, Prime Minister of Hungary, arrives at the EU summit. The heads of state and government of the EU member states are meeting for a summit. Markus Lenhardt/dpa